As you will have likely heard in the press recently, a leak of confidential documents from Panamanian law firm Mossack Fonseca has brought fresh attention to offshore tax evasion through the use of tax havens. It is understood that eleven million documents were leaked from the law firm.
This latest leak together with mutual agreements between governments highlight the ever tightening net for such assets and shows the importance of voluntary disclosure before being “caught” by HMRC.
HMRC have made numerous attempts in the last few years to bring taxpayers back into the system with various offshore disclosure facilities. These have now largely come to an end; however voluntary disclosure should still be pursued as the penalties involved are generally lower than those where HMRC make the first move. This is particularly important with offshore disclosures where the penalties can be up to 200% of the tax due in certain cases.
Eaves and Co have assisted with numerous offshore disclosures and would be happy to help if you have concerns.