Following the closure of last year's Offshore Disclosure Facility (ODF), HM Revenue and Customs (HMRC) has now begun "pursuing those [individuals] with offshore accounts and tax liabilities who did not notify their intention to disclose [under the ODF] … as well as those who notified but decided not to disclose."
Depending on the circumstances, HMRC will be contacting account holders in one of a number of ways:
- A letter and a questionnaire form, followed, where appropriate, by a disclosure form;
- a formal notice of enquiry;
- the issue of self assessment returns; and
- exceptionally, the undertaking of a criminal investigation.
We understand that around 5,000 letters and forms have been issued in the last month. These ask for further details, which will then be verified against information HMRC received from the account holders’ banks. With potential penalties of as much as 100% of any tax due, taxpayers should ensure that they only pay the correct amounts of tax, interest and penalties. Full disclosure is paramount. Taxpayers and their advisers should seek specialist assistance as soon as any contact is received from HMRC on offshore accounts.
If you need further information, please contact Gary Rowson using the online form below.