| New penalties of up to
200 per cent could be imposed on anyone
hiding money offshore, HM Revenue &
Customs (HMRC) has warned. From 6 April
2011, penalties for offshore
non-compliance – for income tax and
capital gains tax – will be linked to the
tax transparency of the country involved,
with higher penalties introduced for
under-declared income and gains from
territories that do not automatically
share tax information with the UK.
David Gauke, Exchequer Secretary to the
Treasury, said: "The game is up for those
going offshore to evade tax. With the risk
of a penalty worth up to 200 per cent of
the tax evaded, they have a great
incentive to get their tax affairs in
order.”
Dave Hartnett, Permanent Secretary for
Tax at HMRC, said: "These new penalties
will increase the deterrent against
offshore non-compliance. They build on
other activity, including signing tax
information exchange agreements, requiring
information about offshore bank accounts
and disclosure opportunities, including
the Liechtenstein Disclosure Facility (LDF)."
The new penalties for income tax and
capital gains tax non-compliance classify
territories into three groups that
determine the level of penalty that
applies to non-compliance. These are:
- where the income or gain arises in a
territory in category 1, the penalty
rate will be the same as under existing
legislation
- where the income or gain arises in a
territory in category 2, the penalty
rate will be 1.5 times that in existing
legislation - up to 150 per cent of tax
- where the income or gain arises in a
territory in category 3, the penalty
rate will be double that in existing
legislation - up to 200 per cent of tax
The first self assessment returns to
which the penalties would apply are those
concerning the 2011-12 tax year (filed by
January 2013).
LINK:
Details of new penalties |
