UK to introduce new offence for tax evaders
At present, HMRC has to demonstrate that even when someone failed to declare offshore income, that the individual intended to evade tax. This change will mean HMRC only has to demonstrate the income was taxable and undeclared meaning it will be easier to secure successful prosecutions of offshore tax evaders.
As well as introducing the new criminal offence, the government will consult on a range of options building on the existing penalties faced by those hiding their money in offshore accounts – currently up to 200 percent of the tax owed – to make sure they act as a clear and effective deterrent.
The consultation will look at whether the existing penalty limit should be raised further, how penalties could be increased if individuals try to move money around in a bid to avoid detection and extending the penalty regime to include inheritance tax. The announcement comes as the government publishes an update to its offshore evasion strategy, No Safe Havens.
It will also publicise that HMRC is ready and able to financially reward whistleblowers for significant information that helps uncover offshore hidden untaxed assets. ■