UK and International Tax news
HMRC Consults On Further Offshore Tax Evasion Sanctions
Friday 30th September 2016
HMRC has issued a consultation document on introducing new legislation which will require taxpayers with outstanding tax liabilities relating to offshore interests, where they have yet to put their UK tax affairs in order, to come forward and correct those liabilities by September 2018.
The consequence of not meeting the new requirement and carrying out the necessary correction within the defined window would see the taxpayer subjected to a new set of legal sanctions for ‘‘failing to correct’’.
A Requirement to Correct past offshore tax non-compliance was first announced in the 2015 Autumn Statement and confirmed in the March 2016 Budget. Legislation is planned to be included in the 2017 Finance Bill.
This latest consultation invites views on the proposed principles and design aspects including a toughened offshore penalties framework and introducing an obligation for taxpayers to put past affairs in order before tougher penalties are introduced and Automatic Exchange of Information agreements come into full effect in 2018.
The consultation runs to 19 October 2016.
If you would like further information on the consultation, please contact Keith Rushen on 0207 486 2378.
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