Recently in enews we reported
what has been widely reported in the press
as HMRC’s ‘Tax Amnesty’.
As previously explained the term amnesty is
misleading as it only applies to the penalty
that would be charged on undeclared tax relating
to the offshore accounts, which HMRC have promised
to cap at 10% if a voluntary disclosure is
made. HMRC could in theory impose a 100% penalty.
The tax and penalties due will need to be paid
by 26 November 2007.
The deadline for notifying an intention to
disclose passed on the 22 June. HMRC say they
had some 70,000 disclosures by that date. They
apparently hold 400,000 pieces of information,
so HMRC believe that a number of individuals
may still have things to discuss.
HMRC suggest they will seek punitive penalties
if they discover non-disclosure and, in some
cases, prosecute. However, if an individual
has something to disclose there is considerable
merit in meeting the November reporting deadline.
It will be very difficult to sustain an argument
for higher penalties if the report and payment
is made by the end of November.
To minimise any liabilities it is important
that anyone who is concerned that they may
have something to disclose gets in touch with
us as soon as possible.
Internet Link:
HMRC website
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