HMRC lay their hands on extensive data in their fight against offshore evasion
HMRC is working with the tax authorities of the USA (IRS) and Australia (ATO) in analysing 400 gigabytes of data which reveals extensive use of complex offshore structures to conceal assets by wealthy individuals and companies.
The data, which is the largest single portion to have been received by the tax authorities in this country and leaked by an unnamed source, shows the global use of companies and trusts in places such as Singapore, British Virgin Islands, Cayman Islands and the Cook Islands.
The data also exposes information that may be shared with other tax administrations as part of the global war on tax evasion.
Offshore Tax Evasion
HMRC have already identified 100 people benefiting from these structures, a number of whom are already under investigation for offshore tax evasion.
Over 200 accountants, lawyers and professional advisers have also been identified as providing advice on the structures and they will now be brought under the Revenue's microscope.
UK residents using these structures are being urged by HMRC to review and seek advice about their tax arrangements to ensure that they are compliant with UK law or face the consequences.
Chancellor of the Exchequer George Osborne said:
“The message is simple: if you evade tax, we’re coming after you. The Government has invested hundreds of millions of pounds to fund the fight against tax evasion, both at home and abroad. This data is another weapon in HMRC’s arsenal. Ahead of the UK’s presidency of the G8 this year, the Prime Minister has made it a key priority to drive an international effort to increase transparency and clamp down on tax avoidance and evasion. By working with our international partners in this way, we are again demonstrating our commitment to this work.”
Jennie Granger, HMRC Commissioner and Director General for Enforcement and Compliance said:
“Working with the international tax community to pursue offshore evasion is another important step in closing the net on tax evasion.
There is nothing illegal about an international structure, especially in a globally integrated economy and these arrangements may be perfectly legitimate and may already have been declared to HMRC. However they may involve tax evasion, avoidance or other serious offences by taxpayers. What has to stop is using offshore structures to illegally hide assets and income.”
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