Her Majesty’s Revenue and Customs (HMRC) department of the British government intends to introduce a new “Requirement to Correct” (RTC) obligation in the Finance Bill 2017, which places an additional obligation on those who have undeclared UK liabilities relating to offshore interests to put their past affairs in order by September 2018. Those who do not bring their tax affairs up to date by that date will face tough new penalties for their “Failure to Correct” (FTC). HMRC has suggested that the RTC should cover any taxpayers that have a UK tax liability that relates wholly or in part to an offshore issue. Those who are found to have undeclared offshore investments and accounts following the end of the RTC period on 30 September 2018, may face tax-geared penalties of up to 200% of the tax they have attempted to evade, and possibly other penalties and increased risk of criminal prosecution.
In October 2016 HMRC will begin to receive huge swathes of data on offshore accounts; this exchange of data is being implemented before the introduction of the Common Reporting Standard. HMRC has called the receipt of the anticipated financial data “game-changing”. On September 5 HMRC opened its Worldwide Disclosure Facility, allowing those with unresolved offshore tax issues to bring their affairs up to date with HMRC. The Facility is part of an extensive package of measures representing a significant toughening of the Government’s approach to tackling offshore tax evasion and those who enable it. Frank Stachan, Head of Tax for Ally Law member firm Edwin Coe, commented that “this is a last chance for those with unresolved issues relating to offshore accounts to bring their tax affairs up to date prior to the introduction of the CRS.”
See your Ally Law member firm attorney to determine if you have any unresolved offshore tax issues relating to British or any other government’s obligations, and how best to resolve any such open issues. Significant penalties and criminal prosecution are part of the tax enforcement scheme in every jurisdiction in which you might have reporting requirements. For more information about Ally Law member firm services in this area, contact us at team@ally-law.com.
Click here for the original article by Frank Stachan of Ally Law member Edwin Coe, LLP.
