Intensified Crackdown on Offshore Tax

The government in its latest move on hunting for offshore tax evading companies have intensified its effort in bringing the culprits to book.. The unit dedicated for this endeavour is the Offshore Co-ordination Unit of HMRC. Its duty is to scrutinise extra information of UK taxpayers with money abroad.

The first task for allocated to this special unit is to scrutinise the financial details of almost 6000 UK residents with bank accounts in HSBC in Switzerland. They will be asked to certify that they do not owe anything to HMRC – or confess that they do.

This is one of HMRC’s grand plan to squeeze an extra £7bn from offshore tax dodgers in the next few years. The unit only staffed by 25 people are planning to expand themselves within the next few years. HMRC’s efforts to claw back potentially hundreds of millions of pounds of uncollected offshore tax commenced in 2006. After years of delays and hurdles, it finally won a breakthrough legal case, giving it the right to demand that banks operating in the UK reveal the names and addresses of UK customers with accounts offshore. This has enabled HMRC to commence its effort in investigating undisclosed offshore tax.

Source; bbc.co.uk

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http://www.bbc.co.uk/news/business-16111639

If you are a company that is subjected to tax investigation by HMRC based on the above mentioned reasons, contact KVS Accountants for Tax Advice.

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