HMRC to crack down on offshore savings accounts
27/11/2008
Next year, HM Revenue & Customs (HMRC) will begin looking for hidden offshore savings accounts. The move will co-incide with a government review of offshore financial centres such as the Isle of Man and the Channel Islands.
HMRC plans to pre-empt its search with an "amnesty" call to British citizens with offshore savings accounts, urging them to declare such accounts on a voluntary basis and pay the tax owed on their deposits.
There are an estimated 50,000 people who have not declared their offshore savings accounts to HMRC.
HMRC has an impressive track record in discovering such accounts and recovering the tax owed. In the three years to 5th April 2007, the tax recovered by its network offices rose from £1.44bn to £3.1bn.
However, this figure only represents a small percentage of the total estimated liabilities that are being evaded.
Many people try to avoid declaring offshore savings accounts in case the capital, as well as the interest earned, is liable for tax. People who conducted business online, for example, are often able to move their money into offshore savings accounts as they do not leave behind them the same "paper trail" as traditional businesses. HMRC and the government will be making a concerted effort to bring such individuals to light in 2009.
HMRC plans to pre-empt its search with an "amnesty" call to British citizens with offshore savings accounts, urging them to declare such accounts on a voluntary basis and pay the tax owed on their deposits.
There are an estimated 50,000 people who have not declared their offshore savings accounts to HMRC.
HMRC has an impressive track record in discovering such accounts and recovering the tax owed. In the three years to 5th April 2007, the tax recovered by its network offices rose from £1.44bn to £3.1bn.
However, this figure only represents a small percentage of the total estimated liabilities that are being evaded.
Many people try to avoid declaring offshore savings accounts in case the capital, as well as the interest earned, is liable for tax. People who conducted business online, for example, are often able to move their money into offshore savings accounts as they do not leave behind them the same "paper trail" as traditional businesses. HMRC and the government will be making a concerted effort to bring such individuals to light in 2009.
