The Tax Chamber of
the First-tier Tribunal have today ordered over 300 banks to give
details to HM Revenue & Customs (HMRC) about their
customers who hold offshore accounts.
HMRC can now issue the information notices to banks ahead of the
New Disclosure Opportunity (NDO). The NDO will allow people with
unpaid taxes linked to offshore accounts or assets to settle their
tax liabilities at a favourable penalty rate.
HMRC will use this information to ensure everyone pays the right
tax and to check that NDO disclosures are complete.
Under the rules of the NDO, people who make a complete and
accurate disclosure will qualify for a 10% penalty. Those who
choose not to take this opportunity and are subsequently found to
have undeclared tax liabilities are likely to face a 30% or higher
penalty and also run an increased risk of criminal prosecution.
The Right Honourable Stephen Timms MP, Financial Secretary to the
Treasury said:
"It is wrong that some people evade paying their fair
share of tax by hiding assets in offshore accounts.
Today's ruling represents real progress in creating a
level playing field for all taxpayers."
Dave Hartnett, HMRC Permanent Secretary for Tax, said:
“I know there are people who regret not taking advantage of our
Offshore Disclosure Facility (ODF) in 2007 which focused primarily
on the customers of five large banks. Today we have successfully
applied to get information on the offshore accounts and assets of
customers of over 300 further banks. I urge any of them who have
unpaid tax liabilities connected to these accounts now or in the
past to come forward and make a full disclosure during the NDO
because we will use the information provided by the 300 banks to
pursue those people who continue to flout the UK’s tax laws.”
Notes to Editors
1. To use the NDO a notification of the intention to disclose
must be made to HMRC between 1 September and 30 November 2009.
2. Those notifying on paper can do so from 1 September to 30 November.
3. Those notifying electronically can do so from 1 October to 30
November.
4. Disclosures can then be made:
* from September 2009 to 31 January 2010 on paper
* from October 2009 to 12 March 2010 electronically.
5. The penalty rate of 10% will apply to those who were not
written to by HMRC under the Offshore Disclosure Facility (ODF) in 2007.
6. Those to whom HMRC wrote to in 2007 offering the 10% rate but
did not complete the ODF procedure and now want to disclose will
have an opportunity to do so with unpaid tax attracting a penalty
of 20% which is more favourable than normal whilst demonstrating
that special rates once declined are unlikely to be repeated.
7. The ODF ran from April to November 2007.
8. Once this disclosure window closes on 12 March 2010, those
taxpayers who have not come forward but are found to have unpaid
tax liabilities will face penalties of at least 30% rising to 100%
of the tax evaded. They also run a risk of criminal prosecution.
Contacts:
Patrick O'Brien
Phone: 020 7147 2318
patrick.obrien@hmrc.gsi.gov.uk
Andrew Bennett
Phone: 020 7147 0051
andrew.bennett3@hmrc.gsi.gov.uk
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk