Circle closes on offshore tax evaders

Date: 9th February 2012

HM Revenue & Customs (HMRC) has announced new measures to stamp out offshore tax evasion.

The news comes shortly after the department lost a high-profile case against football manager Harry Redknapp involving funds kept in a Monaco account.

While Redknapp's innocence was proven, the case has brought the concept of offshore tax evasion into the light.

This could have spurred HMRC to issue a joint statement with the German, Italian, Spanish, French and American governments in a bid to clamp down on cross-border tax evasion.

The statement will see the countries adopt a unified approach to the US Foreign Account Tax Compliance Act legislation.

David Gauke, Exchequer Secretary to the Treasury, said: "The government is committed to tackling tax evasion, wherever it takes place.

"This joint statement builds on the close cooperation of all the countries involved, and of the European Commission, in tackling cross-border tax evasion and provides a practical way forward that should reduce the burdens on the financial sector."

Posted by Jacob Williams