TaxAdministrationWiden offshore amnesty, experts demand

Widen offshore amnesty, experts demand

Taxman launches new amnesty for people who owe tax on interest earned in offshore accounts but experts say the special terms should be offered to taxpayers with onshore tax liabilities to settle too

Jersey: tax haven

Jersey: tax haven

A new amnesty launched by HM Revenue & Customs for taxpayers with bank
accounts overseas has failed to clarify the position of people with tax
liabilities at home in the UK, experts claim.

The amnesty, or new disclosure order (NDO), has been launched for people who
owe tax on interest earned in offshore bank accounts and offers lenient penalty
terms.

But experts have complained the special terms should be offered to taxpayers
with onshore tax liabilities to settle too.

Gary Ashford, national head of tax risk and dispute resolution at RSM Bentley
Jennison, said the NDO is unfavourable for those with onshore outstanding tax
liabilities.

‘This could create an unfair position for those with UK only problems,’ he
said.

‘It would be better to create a disclosure opportunity for all
irregularities, other than the most serious, whether it is offshore or onshore,
for the period of the NDO.’

Ashford said the NDO would be more effective if the terms took into account
taxpayers with all liabilities – onshore or offshore.

‘It is clear from the amount of guidance currently available that HMRC wants
to help as many people as possible to use this facility and come forward as
early as possible,’ he said.

A statement from HMRC said the department would be conducting ‘a new
disclosure initiative that will allow people with unpaid taxes linked to
offshore accounts or assets to settle their tax liabilities at a favourable
penalty rate’.

In the statement, Dave Hartnett, permanent secretary for tax at HMRC, omitted
to include onshore tax liabilities as part of the NDO.

Hartnett said: ‘This will be the last opportunity of its kind.’

The Chartered Institute of Taxation said HMRC has failed to discuss purely
onshore disclosures and will continue to seek guidance.

Related Articles

‘Significant recovery’ for HMRC customer service, claims boss Thompson

Administration ‘Significant recovery’ for HMRC customer service, claims boss Thompson

1y Fraser Simpson, Reporter
HRMC loses £653,000 tax battle following administration error

Administration HRMC loses £653,000 tax battle following administration error

1y Fraser Simpson, Reporter
Bid to cut VAT bill on wedding venue hire rejected by Tribunal

Administration Bid to cut VAT bill on wedding venue hire rejected by Tribunal

1y Richard Crump, Writer
Government should rethink “digitally distracted” HMRC, ATT urges

Administration Government should rethink “digitally distracted” HMRC, ATT urges

1y Fraser Simpson, Reporter
NAO report highlights lessons for HMRC’s future digitalisation plans

Accounting Standards NAO report highlights lessons for HMRC’s future digitalisation plans

1y Fraser Simpson, Reporter
HMRC high-value tax cases drop 15%

Accounting Firms HMRC high-value tax cases drop 15%

1y Fraser Simpson, Reporter
Government deliberates secondary adjustment to transfer pricing rules

Administration Government deliberates secondary adjustment to transfer pricing rules

1y Fraser Simpson, Reporter
HMRC taskforces raise £540m since launch

Administration HMRC taskforces raise £540m since launch

1y Richard Crump, Writer