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Offshore tax evasion: Penalties linked to ‘transparency’

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Penalties for offshore tax evasion are to be linked to the ‘tax transparency’ of the territory in which the income or gain arises.

‘Where it is harder for HMRC to get information from another country, the penalties for failing to declare income or gains arising in that country will be higher,’ HMRC said.

The penalty will be up to 200% of the tax where the income or gain arises in a category 3 territory. These include Barbados, Belize, Mauritius and Monaco.

The department has published a list of ‘category 1’ and ‘category 3’ territories. Territories not listed will be in category 2.

Category 1 territories include the Isle of Man and Guernsey, but not Jersey.