HMRC has confirmed that, after following leads generated by investigations into the so-called Panama Papers, it expects to receive £100 million in additional taxes.
The leak of the controversial Panama Papers exposed individuals allegedly avoiding tax through the use of offshore tax havens.
Data leaks and breaches often prove to be beneficial to HMRC, as they allow it to collect large amounts of extra tax.
James Badcock, partner at law firm Collyer Bristow, said: ‘Though data may have been obtained illegally, this does not generally stop HMRC from using it to pursue taxpayers for non-compliance. However, the right to prevent the flow of private information is a developing area of law worldwide.’
Following on from this, the ‘Requirement to Correct’ (RTC) legislation has now come into effect. Taxpayers have until 30 September 2018 to make a disclosure in regard to any undeclared offshore tax liabilities. If this deadline is missed, HMRC can levy a fine of up to 200% of the tax due, plus penalties in some cases.
The new Common Reporting Standard (CRS) will enable HMRC to receive information on non-UK accounts owned by UK residents. Taxpayers have been urged to contact HMRC if they have offshore accounts.
As your accountants, we can help you to minimise the tax burden. Please contact us for assistance.