We reported a few months ago that the Inland Revenue had set up a task force named the Offshore Arrangements Project to look for UK tax payers using tax havens. Many offshore arrangements could have been made ineffective over the years with various changes in taxation and legislation and this could render many people liable for criminal proceedings, along with their advisers.
According to a firm of accountants, at least one offshore adviser has been extradited to the UK for trial, as the arrangements set up were deemed fraudulent. Apparently, other advisers have closed their offices and are no longer advising.
Our View
The Inland Revenue are now wise to the fact that UK businesses could by pushing money offshore in order to avoid tax and are cracking down. They have been 'niggling' about it for many years but, as times are getting hard and the Government now has a need to borrow, closing down the coffers has become necessary and all routes of 'tax escape' closed.
The Inland Revenue is definitely serious about cracking down on tax evasion. The move to implement the Offshore Arrangements Projects and the offshore information sharing rules will aid the Revenue in their quest!
Remember that tax mitigation is legal. Tax avoidance is illegal.
Get specialist advice if you are thinking of investing offshore or need to save tax.