HMRC Explains New Crown Dependency Disclosure Facility
11 April 2013
Posted by: Author: Robert Lee
Source: Robert Lee
The disclosure opportunities arranged between the UK and the Crown Dependencies are expected to generate an additional GBP1bn (USD1.5bn) in tax revenue over the next five years, HM Revenue and Customs (HMRC) has said.
HMRC has issued a statement warning those with "hidden" investments and assets in the Isle of Man, Guernsey or Jersey to settle their tax affairs before an automatic exchange of information program takes effect.
After September 30, 2016, HMRC will begin to receive information from Crown Dependency banks identifying all account holders. HMRC stresses it will then target those "who refuse to comply," threatening criminal prosecution, significantly higher penalties and the possible publication of names.
HMRC's Director General for Enforcement and Compliance, Jennie Granger, said: "People with overseas assets or investments who have correctly declared income to HMRC and paid tax have nothing to fear. Those who haven't, and who do not make use of the disclosure facilities, face the prospect of a criminal investigation or a significant financial penalty, and the risk of having their name published, once the new information sharing agreement kicks in."
The agreements, signed in February and March, were confirmed in Chancellor George Osborne's 2013 Budget. They make up part of what he has described as "one of the largest ever packages of tax avoidance and evasion measures presented at a Budget," which also includes new rules about partnerships, corporate tax losses and offshore employment intermediaries, and plans to "name and shame" those who give advice on aggressive tax avoidance.