Britannia Radio

Tax Investigations Newsflash Increased penalties for those who fail to disclose announced in today's PBR PBR 2009 announcement This PBR includes measures to tackle avoidance, including enhancements to strengthen the disclosure regime, and new penalties and powers to combat offshore evasion. The total package of measures to protect tax revenues raises £165 million by 2011-12 and protects around £5 billion of tax receipts per year from erosion by tax evasion and avoidance. Offshore evasion The Pre-Budget Report announces robust measures to tackle offshore tax evasion. Legislation will be brought forward to ensure that those who fail to declare offshore tax liabilities will face the tough penalties attracted by deliberate tax evasion.There will also be a new requirement to notify HMRC when opening offshore bank accounts in certain jurisdictions, supported by a separate penalty regime. Evading tax offshore could therefore result in combined penalties of up to 200 per cent of the unpaid tax. HMRC is gaining access to data from over 300 financial institutions on UK taxpayers with offshore accounts. The 'New Disclosure Opportunity' gives those with undeclared offshore assets a final opportunity to come forward to pay tax, interest and a reduced penalty. The deadline for notifications is 4 January 2010. This is the last chance for offshore tax evaders - if they do not come forward now, they can expect much tougher penalties in the future. PwC comment - For anyone thinking about disclosing their offshore account or assets, this announcement is likely to tip the balance in favour of coming clean. Future penalties of 200% would inevitably wipe out any hidden 'rainy day fund'. PwC's 24 hour disclosure helpline 0800 328 8215 is available to help anyone who wants to take advantage of the New Disclosure Opportunity or the Liechtenstein Disclosure Facility.