Penalty Amnesty
HMRC has announced arrangements enabling investors with offshore accounts to disclose to HMRC any income and gains not previously included in their tax returns. The arrangements also apply to other tax defaults.
To use these arrangements, investors will need to notify HMRC by 22 June 2007 of their intention to make a disclosure and then make their disclosure by 26 November 2007.
The HMRC Scheme bears considerable resemblance to settlement arrangements under the RoI Audit Code of Practice for special investigations.
ROI |
UK |
Two months to make a declaration of intent to disclose, two months thereafter to make the disclosure |
Two months to make a declaration of intent to disclose, six months thereafter to make the disclosure |
No De Minimus amount |
No penalty on disclosures of untaxed amounts totalling less than £2,500 |
Unlimited look-back, but earlier defaults deemed to arise in 1990/91 |
Look-back limited to 20 years |
Penalties mitigated to 10% of tax at issue |
Penalties mitigated to 10% of tax at issue |
Limited Assurance on Prosecution for full disclosures |
A final decision from HMRC on whether or not your disclosure has been accepted as soon as possible and by 30 April 2008 |
Assurance that the case details will not be published |
No corresponding sanction under the legislation |
Not open to taxpayers already subject to an enquiry |
Not open to taxpayers already subject to an enquiry |
Available in relation to tax default under all taxheads |
Available in relation to tax default under all taxheads |
Settlement of tax interest and penalties a condition for acceptance |
Settlement of tax interest and penalties a condition for acceptance |
Revenue will not compute the liability |
Revenue will not compute the Liability |
HMRC have mentioned in a press release that they have obtained from various financial institutions details of offshore accounts and credit cards held by UK residents using statutory powers.
The Offshore Accounts Disclosure Facility is available at http://disclosures.hmrc.gov.uk/oaics/.