Higher offshore tax evasion penalties explained
The UK taxman has updated its factsheet on how it calculates new penalties for offshore tax evasion involving income tax, capital gains tax and inheritance tax. HM Revenue & Customs may charge a penalty of up to 200% of the tax due where:
- There's an inaccuracy, failure to notify or deliberate withholding of information;
- It involves offshore matters in certain categories of 'territory' or is an offshore transfer; and,
- The tax at stake is Income Tax or Capital Gains, or for Inheritance Tax transfers made on or after 1 April 2016.
Each type of infraction is sub-divided into three categories: non-deliberate, deliberate, and deliberate and concealed.
And, each comes with its own penalty range, which is also dependent on whether the disclosure to HMRC was prompted or unprompted. Please link to International Adviser to read the full article by Kirsten Hastings.