HMRC issues offshore warning

Date: 1st April 2011

Taxpayers have been warned of the penalties involved with hiding money offshore.

With the new tax year due to start on April 6th, HM Revenue & Customs (HMRC) has issued a warning that people caught evading tax in this way will face penalties of up to 200 per cent.

Under the revamped rules, tax evaders will face increased penalties for under-declaring income and gains from territories which do not automatically share tax information with the UK, the department explained.

David Gauke, exchequer secretary to the Treasury, said: "Time is running out for anyone going offshore to evade tax. Get your tax affairs in order or face the risk of a penalty worth up to 200 per cent of the tax evaded."

Dave Hartnett, permanent secretary for tax at HMRC, added: "We have made significant progress tackling international tax evasion and closing in on tax havens in recent years. This is the next step in increasing the deterrent against offshore non-compliance – and those who decide to take the risk will feel the full force of HMRC’s new penalties."