![]() A voluntary disclosure (if handled correctly) will ensure the best outcome is reached with HMRC, mitigating tax related penalties (often to nil) and avoiding the chance of criminal proceedings. If you discover that you have underpaid your UK taxes, it’s always best to make an approach to HMRC before they open a formal tax investigation. We at Lubbock Fine have come across many instances where we have informed HMRC that their information is incorrect, particularly in relation to that received as part of the international exchange of information called the Common Reporting Standard (CRS). In addition, it’s also important to note that not all the information HMRC receives is correct and/or from reliable sources. Remember, there may be legitimate reasons for holding assets abroad - perhaps for asset protection or part of a legally structured family office strategy. The simple answer is not to ignore it! HMRC will not go away and they are likely to chase those who fail to reply with more formal enquiries. What should I do if I receive one of these nudge letters? This latest initiative builds upon recent nudges into offshore income and gains, domicile and residency claims and bogus COVID-19 payments. HMRC are determined to recover some of the estimated £10 billion lost to tax fraud each year as part of its “tax gap” mitigation strategy. criminal prosecution for deliberate dishonest behaviourĪccording to HMRC, tax avoidance is becoming increasingly global and the investigation of offshore matters is one of their primary objectives over the next few years.Failing to make a voluntary disclosure could run the risk of: The letter, an example of which can be seen here, states that recipients have 30 days to check their tax position and contact HMRC if they wish to disclose any UK tax irregularities. Last week, HMRC prompted hundreds of individuals to check their tax affairs to ensure they have declared all their UK tax liabilities. So what does this latest HMRC nudge letter say? Since the release of the information (known as the Pandora Papers), a new HMRC task force has wasted no time trawling through the data and issuing “nudge” letters to those suspected of evading UK tax on their offshore income and gains. This data leak relates to individuals, companies and trusts alleged to have used secretive low tax environments to avoid the prying eyes of HMRC. Over the last few years, the International Consortium of Investigative Journalists (ICIJ) has released almost 12 million records from 14 offshore jurisdictions. HMRC continue to make use of leaked tax-haven information to prompt individuals to come forward and regularise their tax affairs.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |