HMRC to Access Offshore Accounts Information, Tax Investigations

HMRC has been handed information regarding offshore bank accounts held by UK tax payers.

The development means that HMRC will be able to access information using software and match the account details to individuals who may be suspected of tax avoidance, or in more extreme cases, tax evasion, which can lead to criminal prosecutions and even imprisonment.

HMRC expects to raise up to £300m through the new initiative that is linked to Crown Dependencies, such as the Isle of Man, Jersey and Guernsey, alongside other offshore territories, such as the British Virgin Islands, the Cayman Islands, Bermuda and Gibraltar, to name a few, that have been historically used as tax planning havens.

The information that HMRC expects to receive will relate to bank accounts, investment schemes, insurance policies and offshore trust structures.

Since 2010, HMRC reports that it has recovered £2.4bn in unpaid tax as a result of investigations into offshore accounts and assets.

The new powers afforded to HMRC are as a result of an automatic sharing of information initiative agreed by more than 100 countries to tackle tax avoidance and tax evasion.

For individuals with offshore accounts and assets that may have unpaid tax liabilities, HMRC has launched a Worldwide Disclosure Facility in September 2016 which offers individuals a voluntary tax disclosure opportunity to bring their tax affairs up to date. The latest disclosure replaces previous opportunities such as the Liechtenstein Disclosure Facility (LDF) and British Crown Dependency Facilities linked to the Isle of Man, Jersey and Guernsey.

Recently, HMRC’s estimated figures relating to the cost of tax avoidance and tax evasion in the UK have come under scrutiny. It estimates an approximate annual tax gap of £34bn as a result of unpaid taxes. However, this does not take into consideration the cost of tax avoidance that is committed by multinational corporations.

For individuals with unpaid tax liabilities on offshore bank accounts and assets the net is closing ever faster as a result of HMRC’s new access to information.

If you have a bank account or assets held offshore, you can clarify your tax liabilities and assess your options for making a voluntary tax disclosure by talking to our tax investigations team.

For a free initial consultation to discuss your circumstances in complete confidence, you can call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.