Minister: Tax evasion is morally unacceptable

Date: 8th January 2010

Contractors and small businesses in need of tax advice should be wary of a government crackdown on offshore tax evasion.

Treasury minister Stephen Timms yesterday (January 7th) called for an end to the practice, describing it a "morally unacceptable".

Mr Timms aired his views after HM Revenue and Customs (HMRC) announced that 10,000 people had come forward to notify their intention to disclose previously undeclared income and gains held in offshore accounts.

The government's New Disclosure Opportunity (NDO), which expired on January 4th, meant that those who came forward before the deadline will now be charged a ten per cent penalty and be forced to pay any unpaid tax and interest.

HMRC will now attempt to trace evaders using data on offshore accounts from more than 300 banks.

Anyone who did not admit to undeclared funds could face penalties of up to 100 per cent of unpaid tax and interest if they are caught.

Mr Timms said: "Hiding money in offshore accounts to evade tax is economically and morally unacceptable. It robs public services of funding and places an unfair burden on the honest majority of taxpayers.

"Some people will still be tempted, and that is why the government will bring forward measures during 2010 to build on the significant progress made both in the UK and globally during 2009 in closing down offshore tax evasion for good."

Posted by Emma Clarke