Offshore Tax Evasion Advert Squeeze

Offshore Tax Evasion Advert Squeeze.

Following a meeting of the G20 (20 largest economies in the World) regarding tax evasion, the UK Government has confirmed it is to launch an advertising campaign urging people who have offshore accounts to make full disclosure of interest received and accounts.

This is the latest in a whole string of warnings issued by both HMRC and Government, we suspect will do little to encourage hard core non-disclosers and tax evaders.

Comment

For most a “carrot and a small stick” will get the donkey to move.  As far as HMRC is concerned, they have offered tax amnesties and small fines.  Perhaps now is the time to get tough.

Fines of 50 X the amount of tax evaded (pretty much a life time of tax) and a jail sentence for any tax evasion over £5,000 per year is a very big stick. 

The fine and prison term should be for both the tax evader and tax adviser that arranged the scheme.

We suggest issuing a warning like this would bring more people out, but perhaps another amnesty, to encourage first will mean final tax stragglers disclose their affairs.