Taxman has right to hit hard
Tax evaders that hide their money offshore now face penalties of up to 200%
of the tax due, government papers have confirmed.
Following a consultation launched in the 2009 Pre-Budget Report, the
government is set to legislate to ensure that those who fail to declare income
and gains from jurisdictions that do not automatically exchange information with
the UK will face much tougher penalties.
The government is also warning that it will look further at what information
it needs to collect on offshore assets, including offshore bank accounts.
The move follows two amnesties granted by the government that allowed tax
payers to declare offshore income and face penalties as low as 10%. Separately,
the Liechtenstein Disclosure Facility, which will run until 31 March 2015, is
expected to net nearly £1bn for the government in undeclared taxes, interest and
Cathy Corns, tax partner at Mercer & Hole, said: ‘The revenue is losing
patience – there have been three amnesties, including the Liechtenstein deal,
and so it now feels it has the right to hit tax evaders hard.’