New tax amnesty for offshore account holders

by Gill Montia

Story link: New tax amnesty for offshore account holders

Yesterday’s budget included measures that allow Britons with offshore savings and investments to declare any unpaid taxes to HM Revenue & Customs (HMRC).

Under the amnesty, also known as a Disclosure Opportunity, those with troubled consciences have until March 2010 to advise HMRC of unpaid taxes and settle their debts.

Tax evaders have been warned that they will be pursued by the Revenue and the threat should be taken seriously as HMRC will be issuing notices to financial institutions requiring information about offshore account holders.

The first such exercise was undertaken in 2007, when £450 million was raised by targeting offshore accounts provided by High Street banks.

Around 45,000 people paid their dues but the outcome was generally thought to have been disappointing.

The largest single payment under the scheme was £3 million and the average was £9,000.

November of last year saw the launch of a second campaign which focused on the smaller banks and building societies with offshore operations.

In a further development, authorities in Jersey agreed to share information with HMRC only last month but new legislation is required before the Tax Information Exchange Agreement can become effective.