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.’
Richard Le Tocq, head of Locate Guernsey, discusses the chancellor’s approach to high net worth individuals, and why relocation is increasingly attractive to HNWIs
The firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of reform
Legislation on the NICs changes to be brought forward in the autumn following publication of 'the full effects of the changes to Class 2 and Class 4' in the summer
Following chancellor Philip Hammond’s Spring Budget speech, we explore the key takeaways for businesses and individuals