HMRC looks to target people with offshore bank accounts

Date: 28th July 2008

Sole traders and small business owners that have attempted to evade paying tax by putting their money into havens in Europe and the Channel Islands will be asked by HM Revenue & Customs (HMRC) to give themselves up in return for less severe sentences.

The Sunday Times has learnt that HMRC is preparing a new drive to target people who have avoided taxation by using offshore havens.

Last year, HMRC offered people with offshore accounts the chance to declare their money and pay ten per cent of outstanding tax, rather than the full amount.

However, in an interview with the Sunday paper HMRC's acting chairman, Dave Hartnett, revealed that the new penalty system would be more complex this time.

He added that HMRC would now be pushing for jail sentences for those who continue to try and avoid paying tax and suggested that the new deal might not be open to those who failed to provide all their information last year.

"Why should we give you a second chance to have a good deal?" he wondered.

"We want to clean this up. We are saying to individuals if they come forward before we write to them, we would probably regard that as voluntary and they will tend to walk away with more money than those who do not come forward."