Press Release

HM Revenue & Customs looks offshore

17 March 2008

HM Revenue & Customs (HMRC) is writing to approximately 5,000 people who they believe are offshore account holders, says ACCA (the Association of Chartered Certified Accountants) today.

From now until 22 June, HMRC will seek to identify those who have not declared their savings and investment income from offshore accounts held abroad.

ACCA is recommending full disclosure and co-operation with the taxman, as HMRC will fine those who fail to submit their details, despite HMRC not being able tell from their records whether these account holders have already informed HMRC about their accounts.

Chas Roy-Chowdhury, head of taxation at ACCA, says: "This is a complicated compliance check by the taxman. They are depending very largely on the willingness of offshore account holders to inform the taxman of their financial details. But if this is not done proactively, the taxman will find other ways and means, such as targeting banks and finance providers. They are intent on getting the information they want."

HMRC says that while there is nothing wrong in having an offshore account, the account holder does need to let the taxman know about any liabilities they may have – or face the consequences.

ACCA recommends working proactively with HMRC on this issue. Chas Roy-Chowdhury says: "If you receive a letter from the taxman about an offshore account, the best thing to do is to co-operate. If a response is not received within 30 days, then the taxman says that a reminder will be issued warning of the consequences of continuing not to respond.

"This is an opportunity to put things right with the taxman, but they also warn that if a disclosure is made which shows interest and income has been received, then interest is payable and in some cases the taxman will seek ‘penalties’."

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