We have been asked
to point out that a property developer, who admitted tax fraud,
deliberately failed to disclose a Swiss bank account and evaded
inheritance tax but did not close a secret Swiss bank account in
an attempt to avoid detection.
Michael Shanly was ordered to pay fines and compensation
totalling £830,000, plus costs, at Wood Green Crown Court on 4
July.
Michael Shanly had previously failed to disclose the Swiss
offshore account to HM Revenue & Customs (HMRC) during a
civil enquiry where he was found to owe HMRC around £2 million.
This account was discovered when information about UK taxpayers
with HSBC bank accounts in Geneva was handed over to HMRC. Checks
were then made to establish whether these account-holders had
declared and paid what they owed.
Property millionaire Shanly, who features on the Sunday Times
Rich List, opened the account in his name and made use of it for
several years. It later contained only his mother's
money. Four years after his mother died, he closed the account,
and transferred all the money – evading £430,000 Inheritance Tax.
David Gauke, Exchequer Secretary to the Treasury, said:
“Most hard-working taxpayers are rightly angry that a small
minority think that they are above the tax rules the rest of the
country plays by. This case proves that the Government will track
down and take action against those who try to get out of paying
the tax they owe. The message is clear: even if you try to hide
money abroad, HMRC will find you.”
Chris Martin, Assistant Director, HMRC Criminal
Investigation, said:
“Mr Shanly – like others – took advantage of his offshore
account to hide money and evade tax that was owed to the public
purse. In doing so he eventually evaded paying tax. He thought it
was out of reach of HMRC and hoped we would never find it.
However, we discovered it, and he will pay a heavy penalty.
“HMRC is continually receiving information from various
sources and working together with partner agencies here and
abroad. Those attempting to hide offshore accounts must be aware
that HMRC is closing in on offshore assets.”
This is the first case to come before a court using the data
obtained by HMRC on UK citizens with HSBC bank accounts in Geneva.
HMRC criminal investigators continue to review the information
obtained and further prosecutions are likely.
In sentencing Recorder Rosamund Horwood-Smart QC said:
“In this court there are no rules just for the rich and no
rules just for the poor... the tax system relies on voluntary and
honest disclosure of tax affairs and it applies to all equally.”
Notes for editors 1. HMRC obtained the offshore HSBC bank
account data through tax exchange agreements with France in April
2010.
2. HMRC offered many disclosure opportunities, two of which,
in 2008 and 2010, were – Offshore Disclosure Facility and New
Disclosure Opportunity – for those with money offshore to come
forward and pay anything that was due. These together raised
almost £500 million.
3. Defendant’s details: Michael James Shanly, DOB 30/12/1945,
of Hurley (Maidenhead) in Berkshire. He admitted one count of
cheating the public revenue at Wood Green Crown Court on Wednesday
4 July 2012.
NAT70/12
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