The HM Revenue and Customs (HMRC) permanent tax secretary Dave Hartnett has revealed that those wishing to hold £25,000 or more in an offshore account will have to make a tax notification. Speaking to the Chartered Institute of Taxation (CIoT) regarding the New Disclosure Opportunity, Mr Hartnett explained “People are going to have to make a notification going forward of an offshore account which hits £25,000 balance or is newly opened with that sort of money. Now people who don’t do that and whose tax returns are wrong will face a penalty of up to 100 per cent of the tax for not notifying us plus up to 100 per cent of the tax for an incorrect return. That’s a big penalty.”

Later adding that increasing cooperation between tax administrations and an ever decreasing world in regards to communications and data sharing he said “Be afraid, be very afraid, if you want to keep hiding your money offshore.”

Whilst holding an offshore account is not illegal, residents of the UK are obliged to disclose all of their income, including that made, or saved abroad. Following the interview with Mr Hartnett, CIoT said that he had given a clear message on the HMRC’s view on offshore banking. Meanwhile, Brookson managing director Martin Hesketh explained “Now more than ever it’s important for individuals to seek professional advice if they are uncertain of their tax position. This move takes a firm hand against tax evasion and gives us further evidence of HMRC’s recent clampdown on compliance. This is clearly an issue they are taking very seriously.”

Later adding that increasing cooperation between tax administrations and an ever decreasing world in regards to communications and data sharing he said “Be afraid, be very afraid, if you want to keep hiding your money offshore.”

Whilst holding an offshore account is not illegal, residents of the UK are obliged to disclose all of their income, including that made, or saved abroad. Following the interview with Mr Hartnett, CIoT said that he had given a clear message on the HMRC’s view on offshore banking. Meanwhile, Brookson managing director Martin Hesketh explained “Now more than ever it’s important for individuals to seek professional advice if they are uncertain of their tax position. This move takes a firm hand against tax evasion and gives us further evidence of HMRC’s recent clampdown on compliance. This is clearly an issue they are taking very seriously.”

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