offshore tax avoidance

News Feed From Norton Folgate KPMG is warning that UK taxpayers with offshore holdings could soon be subject to new legal obligations after HMRC launched a new consultation to tackle offshore tax evasion and non-compliance. Proposals include a new “requirement to correct” obligation which would mean anyone with UK tax irregularities related to offshore interests now has a legal obligation

to correct this by September 30, 2018. Failure to comply could result in penalties in the range of 100% up to 200% of the total amount; a further 50% penalty if steps have been taken to try and avoid reporting; an asset-based penalty of up to 10% of the asset value; and naming and shaming the individual concerned. Beatrice Friar, head of private client advisory for KPMG in Scotland, said: “This is the latest example of HMRC drawing in the net around offshore aspects of tax evasion, and confirms that voluntary disclosure is the only acceptable option in today’s tax transparency environment for those with issues to resolve.”