The deadline for tax amnesty, where people had been encouraged to make full disclosures of their overseas investments and pay backdated taxes without penalty, passed on 22 June 2007. Only 8,000 people came forward. Under European Union legislation, major banks in the United Kingdom had to provide the HM Revenue and Customs, a list of individuals who hold offshore bank accounts.
Account holders who have declared any unpaid taxes will be spared a full investigation, but are required to pay a penalty of 10 per cent, together with the tax and interest due by the 26 November. Penalties for those who have not declared the tax, even if they believed themselves to be innocent, will be severe with financial penalties of up to 100per cent of the outstanding tax. The launch of the HM Revenue and Customs investigations and clampdown of undeclared tax is 9 July.
Our view
Those who have not taken advantage of the amnesty will face the penalty. People will be caught.