The deadline is looming for anyone in the UK who uses offshore tax havens and has yet to declare their
bank accounts or
savings accounts to HM Revenue and Customs (HMRC). Under the New Disclosure Opportunity, such individuals have until next Monday (4 January) to come forward and receive a reduced penalty of ten per cent in return.
HMRC officials point out that notification of offshore savings and
current accounts can be carried out online and does not require any tax calculation or payment. After 4 January, people found to have undisclosed offshore assets will be subject to a full investigation, penalties of up to 100 per cent and - in the most serious cases - prosecution.
Stephen Timms MP, financial secretary to the Treasury, emphasised that the use of offshore accounts to evade UK tax is illegal: "It deprives the UK of tax revenues to fund essential public services and is unfair to the vast majority of honest taxpayers who pay what they should."
Estimates by HMRC suggest UK residents possess around 400,000 offshore
bank accounts and
savings accounts. About 20-25 per cent of these are believed to owe unpaid taxes.
