Offshore disclosure facility

More than 50,000 disclosers now face the problem of ensuring that they pay the right amount of tax, interest and penalty - and no more - by 26 November. Meanwhile HMRC determinedly seeks out more offshore bank information and launches investigations into those who didn't come forward by 22 June.

Results of our survey

• 89% support the concept of offering a fixed 10% penalty to people who come forward
• 82% believe that HMRC will gain access to most UK residents' offshore bank accounts
• 82% would have liked HMRC to have publicised the ODF more widely
• 73% want HMRC to extend the 22 June 2007 deadline

Response A - "It is far too optimistic a deadline except for the simplest of cases".

Response B - "I don't think they wanted to catch anything other than the smallest of cases. The others they would prefer to carry out a full enquiry with no incentives".

Making a disclosure - what next?

Many people are now facing up to the task of collating the information that will allow them to calculate the tax, interest and 10% penalty accurately. No one wants to pay more than is legally due but without advice they might well do so. The complexity of concepts such as domicile, residence and remittance have the potential to trip up the uninformed. When is the use of estimates reasonable? What constitutes innocent error? What if I need time to pay? The answers to these questions are not always clear. If you need help call us free and without obligation on +44 (0) 800 328 8215.

HMRC - what next?

HMRC is determined to press forward on two fronts:

• Using data already obtained from banks, it will vigorously investigate those holders of undisclosed offshore accounts who did not come forward by 22 June. Many will face prosecution. If you are in this position you should consider taking advice with a view to approaching HMRC as soon as possible to reduce the risk of criminal action. Undisclosed accounts with the largest balances will be worked by HMRC's elite investigation teams in Special Civil Investigations (SCI) and Civil Investigation of Fraud (CIF) offices.
• More than 500 financial institutions based in the UK but with connected offshore banking businesses will be subject to HMRC's attempt to access further undisclosed offshore account data. It is possible that a further ODF will materialise if HMRC secures further large tranches of offshore banking information.

Contact details
Email: Alan Hunter
Tel: +44 (0)131 524 2251

Email: Iain Macleod
Tel: +44 (0)141 245 2229