Undisclosed Offshore Income Settlement Opportunity
17 December 2015
Should you have previously undisclosed offshore holdings or investments, now may be the time to start the ball rolling and disclose income from these investments before 31st December 2015.
After that date, if HMRC launches an enquiry, the penalty charge may be up to 200% of the outstanding tax due, plus interest. The capital may have disappeared through high living and bad investments but the liability remains, and if HMRC is aware of the investment, the penalty legislation alone provides HMRC the opportunity to charge significant penalties. HMRC will also consider if they can get a criminal conviction as sending a non-compliant taxpayer to prison always sends a powerful message.
For those clients who consider that HMRC is really not up to the task of finding them, they should be aware that from next 2016, a large number of international information exchange agreements come into force and this data will be entered into their Connect (data interrogation) software to be married up with the taxpayers information and automatically compared to what is on the return.
We would strongly recommend all clients in such a position to take advantage of this more beneficial settlement opportunity. There will still be another HMRC Settlement Opportunity next year but the inference is that this will not be anywhere near as generous in terms of penalty treatment. Details of HMRC’s current settlement opportunity can be found HERE
For more information on this or to discuss your client’s particular situation, speak to Shane O’Dowd at (028)3832 4924 or contact him by email at firstname.lastname@example.org .