18 July 2018
Offshore tax evasion has been a large problem for the UK. In order to help tackle it, HMRC will be receiving information on bank accounts and financial investments from hundreds of countries that have signed up to the Common Reporting Standard (CRS) – an automatic exchange of information that has been commissioned by the Organisation for Economic Cooperation and Development (OECD).
The CRS comes into force later this year. In the meantime, there is a ‘last chance’ opportunity for taxpayers to disclose any offshore tax evasion activities. So if you have undeclared UK tax liabilities in respect of offshore issues, you now have until 30 September 2018 to correct the situation – or you’ll face tough penalties.
The “Requirement To Correct” (RTC) will apply to undeclared Income tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT) arising from:
Non-compliance under the RTC can be corrected by:
Taxpayers falling within the RTC who do not correct their situation by 30 September 2018 will be subject to severe penalties – the minimum being 100% of the tax, with a maximum penalty of 200%. No penalty will be charged if the taxpayer has a reasonable excuse.
There may also be:
Voluntary disclosures should always be made sooner rather than later. If you would like us to review your affairs to help correct your tax situation and avoid future fines, please get in touch with our Tax Specialist Denise on 020 8530 0720. Or email email@example.com.