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A large number of individuals utilise structures in offshore jurisdictions legitimately, e.g. for asset protection or succession planning purposes, and there is nothing inherently unlawful about doing this. The UK’s personal tax regime allows for the use of non-UK structures in certain scenarios. Offshore structures utilised by such individuals may need to be reported and the appropriate taxes should be paid, though tax advice from an Ally Law member firm should be sought as this is a complex area. However, the recent data leak from the law offices of Mossack Fonseca, a Panamanian-based law firm whose services include the incorporation of companies in offshore jurisdictions, may compromise those who hold unexplainable sources of wealth. Her Majesty’s Revenue and Customs (HMRC) has put together a team to sift through the vast amount of current, detailed data as it relates to taxpayers with links to the UK.
HMRC Director-General of Enforcement and Compliance has stated: “HMRC is committed to exposing and acting on financial wrongdoing and we relentlessly pursue tax evaders to ensure that they pay every penny of taxes and fines they owe.” Frank Strachan, Head of Tax Services of Ally Law member firm Edwin Coe, commented: “[I]f the use of offshore accounts and structures crosses the line into actions and behaviours which could be classified as tax evasion, then I expect to see the full force of HMRC’s powers used in this instance.”
If you think you may be associated with this leak, you should proactively seek advice from an experienced tax attorney at the Ally Law member firm in your jurisdiction. For more information about our services in this area, contact us at yourally@ally-law.com.
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By Frank Strachan of Edwin Coe LLP.
