The Finance Act 2016, Section 162(1) and Schedule 20 (Appointed Day) Regulations, SI 2016/1249, bring into force the new penalties for those who have deliberately enabled offshore tax evasion or non-compliance by another person, where that person has already been convicted of a relevant offence, or received a relevant penalty. The new penalties will apply to relevant acts or omissions occurring on or after 1 January 2017.
Commenting on a recent announcement by HMRC about the new penalties, Dawn Register, partner at BDO, said: ‘this announcement, right at the start of the New Year, further highlights the pressure that is continuing to mount around cracking down on tax evasion and avoidance, especially in the build-up to April 2017, where we will see the commencement of the serial avoiders special regime. Most tax professionals have already seen a change in appetite for ‘highly artificial’ tax schemes with many taxpayers being conscious of HMRC’s actions in this area’.
A corporate criminal offence of failure to prevent facilitation of tax evasion will be introduced later this year through the Criminal Finances Bill.
The government also published draft legislation in December setting out a new requirement for individuals to correct past tax evasion. This ‘requirement to correct’, said Dawn Register, ‘is going to shine a spotlight on individuals with any offshore related tax matters, to check and double check that their UK filings are accurate. Advisers are also going to feel under pressure to ensure there are no technical mistakes. We expect this will lead to an increase in voluntary disclosures prior to the deadline of 30 September 2018. By making this a legal requirement, HMRC is really giving teeth to the message that people who do not get their tax affairs in order will face severe consequences’.
In addition, the government is currently consulting on a proposed new requirement for businesses to notify HMRC of certain complex offshore financial arrangements they create or promote.
The Finance Act 2016, Section 162(1) and Schedule 20 (Appointed Day) Regulations, SI 2016/1249, bring into force the new penalties for those who have deliberately enabled offshore tax evasion or non-compliance by another person, where that person has already been convicted of a relevant offence, or received a relevant penalty. The new penalties will apply to relevant acts or omissions occurring on or after 1 January 2017.
Commenting on a recent announcement by HMRC about the new penalties, Dawn Register, partner at BDO, said: ‘this announcement, right at the start of the New Year, further highlights the pressure that is continuing to mount around cracking down on tax evasion and avoidance, especially in the build-up to April 2017, where we will see the commencement of the serial avoiders special regime. Most tax professionals have already seen a change in appetite for ‘highly artificial’ tax schemes with many taxpayers being conscious of HMRC’s actions in this area’.
A corporate criminal offence of failure to prevent facilitation of tax evasion will be introduced later this year through the Criminal Finances Bill.
The government also published draft legislation in December setting out a new requirement for individuals to correct past tax evasion. This ‘requirement to correct’, said Dawn Register, ‘is going to shine a spotlight on individuals with any offshore related tax matters, to check and double check that their UK filings are accurate. Advisers are also going to feel under pressure to ensure there are no technical mistakes. We expect this will lead to an increase in voluntary disclosures prior to the deadline of 30 September 2018. By making this a legal requirement, HMRC is really giving teeth to the message that people who do not get their tax affairs in order will face severe consequences’.
In addition, the government is currently consulting on a proposed new requirement for businesses to notify HMRC of certain complex offshore financial arrangements they create or promote.
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