Treasury proposal may fine tax evaders up to 200% of amount owe...

https://www.theguardian.com/world/2016/aug/24/treasury-proposa...

Treasury proposal may fine tax evaders up

to 200% of amount owed
Tougher stance follows Theresa Mays leadership campaign promise to be more
punitive of tax evasion and avoidance
Juliette Garside
Wednesday 24 August 2016 19.49BST

The Treasury is proposing new rules to punish oshore tax evaders who fail to come
clean about their nances before September 2018, with nes of up to 200% of the
amount owed.
Published on Wednesday, the measures represent the second government consultation
in two weeks on sanctions against tax cheats.
The prime minister, Theresa May, promised to be tough on tax evasion and avoidance
last month during her campaign to become leader of the Conservatives. The Treasury
has acted swiftly to signal a tougher stance with greater powers for tax inspectors.
The requirement to correct measure will apply to individuals and corporations. Those
owing UK tax will be penalised and potentially named and shamed if they fail to declare
all the relevant information to HM Revenue & Customs.
Jane Ellison, nancial secretary to the Treasury, said: For too long it has been too easy
for people to hide their money overseas to evade tax. We are changing that.
The penalties range between 100% and 200% of the undeclared tax, and those caught
may also have to forfeit a percentage of their assets. The rates are higher than existing
nes, which can be reduced to zero for those who come forward and have been careless
rather than deliberately dishonest.
Ellison said the Treasury will be able to come down harder on evasion because tax
inspectors will soon have greater access to information on assets held oshore. This will
begin next year with the introduction of the common reporting standard, an
agreement between 100 countries to automatically share information about bank
accounts belonging to individuals, companies, trusts and foundations.
The UK is among a group of 54 early adopters who will start sharing this information by
2017, as are some of the better-known tax and secrecy havens, including the British
Virgin Islands, Cayman Islands, Luxembourg, Liechtenstein, the Isle of Man, Jersey and
Guernsey.
Switzerland, the Bahamas and Singapore will be involved by 2018, along with Panama.
The Central American country had previously refused to join the initiative but

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Treasury proposal may fine tax evaders up to 200% of amount owe...

https://www.theguardian.com/world/2016/aug/24/treasury-proposa...

international condemnation after the publication of the Panama Papers led to an about
turn.
The US, where bank regulation is divided between federal and state agencies, has still
not signed up to the initiative.
Last week the Treasury published a consultation on new laws to punish the facilitators
of tax avoidance. It targets the accountants, lawyers, nancial advisers and banks who
market schemes that fall foul of the tax tribunals.
The measure will seek to discourage enablers of schemes such as the 290m structure in
which the radio presenter Chris Moyles and hundreds of others tried to save tax by
claiming losses incurred as secondhand car dealers.
This weeks measure rst announced by the then chancellor, George Osborne, in the
2015 autumn statement is likely to be introduced as part of the 2017 nance bill.
Under requirement to correct HMRC will be able to ne tax avoiders for incorrect
statements going back between four and 20 years, depending on whether the avoidance
was deliberate or not.

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