Tax BodiesTough new sanctions for offshore tax evaders

Tough new sanctions for offshore tax evaders

Tax evaders are set to face tough new sanctions under plans detailed by HM Revenue and Customs (HMRC) today

TAX EVADERS are set to face tough new sanctions under plans detailed by HM Revenue and Customs (HMRC) today.

The proposals will mean that those who do not come forward and pay outstanding taxes from offshore investments and accounts, could face even tougher penalties of up to three times the tax they try to evade, and increase their risk of potential criminal charges

From October 2016, HMRC will start to receive an unprecedented amount of data on those with offshore accounts in the Crown Dependencies and Overseas Territories – one year ahead of even more data coming in from across the globe, when the Common Reporting Standard comes into force.

Financial secretary to the Treasury, Jane Ellison, said: “This is a game-changer in the fight against evasion and it’s time for anyone who is evading tax to do the right thing and pay what they owe.”

Alongside these changes, HMRC will open its Worldwide Disclosure Facility (WDF) from the 5 September 2016. The WDF, announced at Budget 2015, allows those with outstanding tax to pay to put their affairs in order and will offer no special terms. HMRC will release further details when it opens.

HMRC has been clear that not paying tax by failing to disclose your offshore income and investments is illegal. In 2014-15 HMRC brought in £26.6bn from tackling tax evasion and avoidance and since 2010 has raised more than £2.5bn from offshore evasion initiatives.

Today’s action builds on the wide range of measures introduced by the government to toughen sanctions for all those involved in offshore tax evasion. This includes a new criminal offence for tax evasion, increased civil sanctions for offshore tax evaders, and civil sanctions for those who enable offshore evasion.

Related Articles

OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

4m Alia Shoaib, Reporter
Treasury Select Committee report released on Making Tax Digital

Accounting Standards Treasury Select Committee report released on Making Tax Digital

10m Stephanie Wix, Writer
HMRC cuts over 150 offices to reduce running costs

Corporate Tax HMRC cuts over 150 offices to reduce running costs

10m Stephanie Wix, Writer
PAC raises “serious concerns” about HMRC’s digital plans

Corporate Tax PAC raises “serious concerns” about HMRC’s digital plans

12m Stephanie Wix, Writer
ACCA announces partnership with RD Tax Solutions

Accounting Standards ACCA announces partnership with RD Tax Solutions

12m Stephanie Wix, Writer
Tax avoidance crackdown sees 80% jump in additional HMRC revenue

Accounting Firms Tax avoidance crackdown sees 80% jump in additional HMRC revenue

11m Stephanie Wix, Writer
Making Tax Digital: the "unexpected item in the bagging area"

Accounting Standards Making Tax Digital: the "unexpected item in the bagging area"

11m Stephanie Wix, Writer
Finance Bill 2017: Corporate tax reporting requirements 'a burden'

Business Regulation Finance Bill 2017: Corporate tax reporting requirements 'a burden'

12m Stephanie Wix, Writer