Could Offshore Account Holders Face Jail?

HMRC recently announced that it plans to make it a criminal offence to withhold income gained from money held in offshore bank accounts.

This could mean that individuals who fail to declare the income from their offshore accounts may face jail for up to six months in serious cases. The threat of jail is in addition to financial penalties that could be imposed if, through a tax investigation , HMRC establish that tax on income has been undeclared.

The move is the latest in HMRC’s tough clampdown on UK tax avoidance following the launch of Accelerated Payment Notices (APNs). It has estimated that £1.5bn has been recovered in the last two years from offshore tax evaders.

Those at threat of the new proposals will be individuals who have evaded paying significant amounts of tax, although it is believed that a threshold has not been set.

Many have raised concerns over the plans, in particular, how strictly the rules will be imposed.

What is clear for those that hold money in offshore bank accounts is that HMRC is continuing to pile on the pressure to ensure it meets its goal of recovering as much undeclared tax as possible.

If you hold an offshore bank account you should seek advice from an expert tax professional to clarify your position. If HMRC make contact with you it could be too late.

There are a number of options available to individuals looking to make a voluntary disclosure to HMRC.

To discuss your circumstances with our tax investigations professionals in complete confidence call 0113 387 5670 or fill out an Enquiry Form.