Contractors might be interested to learn that HMRC is going to impose penalties of up to 200% on individuals found guilty of tax and capital gains evasion.
The fines will be imposed on people who deliberately salt away their income in countries which do not share tax information with Britain.
This latest move by the government confirms its commitment to stamping out offshore tax evasion. Dave Hartnett, HMRC’s permanent secretary for tax, said that these stiff new penalties should act as a deterrent to offshore non-compliance.
The government has classified countries into three categories to determine the penalty for non-compliance. Countries that do not exchange tax information with the UK are classed as category 3 and tax evaders found guilty of hiding their funds there will receive the 200% penalty charge.
The financial secretary to the Treasury, David Gauke, says the game is finally up for offshore evaders. The government has given HMRC an additional £900 million to tackle people who cheat the tax system because it is determined to act against those who refuse to settle their obligations, he added.
Disclosure opportunities, such as the Liechtenstein Disclosure Facility, have been implemented to give people the chance to declare their hidden funds, in return for lower penalties. It is thought that the LDF will generate more than £1 billion before it ends in March 2015. The government has also signed exchange agreements with some countries to obtain details of offshore bank accounts.
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Image: in the moment by Robert S. Donovan
