HMRC To Obtain Offshore Bank Account new Information

In January 2016 HMRC will have access to new information about offshore bank accounts and trusts of UK individuals.

Led by the Organisation for Economic Cooperation and Development (OECD), the “common reporting standard” initiative will require financial institutions from over 50 jurisdictions to pass information about the bank accounts and trusts held by UK individuals onto HMRC.

The automatic sharing of information will allow HMRC to compare its own data with the new information in order to highlight any discrepancies in tax liabilities.

It is predicted that the new information will give HMRC more grounds to bring criminal prosecutions where it suspects tax evasion. If HMRC launches a criminal investigation into suspected tax evasion, through the new initiative, it will be able to call in the assistance from their counterparts in international jurisdictions.

Financial institutions in key international jurisdictions from Switzerland to Cayman Islands, and Guernsey and Jersey closer to home, have agreed to the terms of the OECD information sharing initiative.

The collaborative sharing of information will assist HMRC in clamping down on tax avoidance and evasion through offshore trusts and bank accounts.

It has also been suggested that, as HMRC has only been successful in one criminal prosecution over tax evasion, the sharing of information will assist in more convictions in the extreme cases.

For those with offshore bank accounts and trusts, time is ticking before HMRC obtains more accurate information about your affairs. If HMRC launches a full tax investigation into your affairs, you face the potential of higher financial penalties and criminal prosecution.

In order to discuss the possibility of making a voluntary disclosure to HMRC you can speak to our experienced tax investigations professionals in complete confidence. Call us on 0113 387 5670 or fill out an Enquiry Form and we’ll get back to you straight away.