Stephen Timms, the Treasury Minister, today branded offshore tax evasion "morally unacceptable" today, as HM Revenue and Customs (HMRC) announced that around 10,000 people came forward to declare money in offshore accounts before the UK tax amnesty deadline on Monday.
Mr Timms said: “Hiding money in offshore accounts to evade tax is economically and morally unacceptable. It robs public services of funding and places an unfair burden on the honest majority of taxpayers.
“Some people will still be tempted, and that is why the Government will bring forward measures during 2010 to build on the significant progress made both in the UK and globally during 2009 in closing down offshore tax evasion for good.”
Under the amnesty, introduced in July last year, those who came forward voluntarily must now pay any unpaid tax, plus interest, and a 10 per cent fine.
However, people who have not come forward will face investigation, penalties of 100 per cent on the tax due, being publically "named and shamed" and possibly even prosecution. New maximum fines of 200 per cent could be brought in during 2011 if the Finance Bill is enacted following the 2010 Budget.
HMRC says it is now acquiring data on offshore accounts requested from over 300 banks in countries all over the world.
Around 100,000 people are believed to have offshore income. The HMRC expects to raise £500 million over three years as a result of the people who have come forward voluntarily and much more from those who have not. In 2007, a similar disclosure scheme raised £450 million from 45,000 people.
It is widely believed that the taxman pushed back the initial deadline from November 30 last year because so few people came forward. More than 1,000 of those who have come forward did so on January 4 itself.
HMRC said that it was not disappointed with the numbers, adding that the current scheme had dealt with much more niche banks and a much smaller client base than in 2007.
However, it admitted that the process of chasing up those who have not come forward would be expensive and take months or even years.
It added that people who had not yet disclosed offshore accounts should still do so since volunteering information was likely to invite a lower penalty than if they were caught out.
There has been an international crackdown on tax evasion via offshore accounts since the G20 summit in March last year, when the Organisation for Economic Co-operation and Development pledged to create greater tax transparency around the world.
Last month, Italy said it had raised €95 billion (£86 million) from a tax amnesty which it said had repatriated 98 per cent of illegally-held overseas money. That scheme has now been extended until April.
From Times Online
Francesca Steele
“Some people will still be tempted, and that is why the Government will bring forward measures during 2010 to build on the significant progress made both in the UK and globally during 2009 in closing down offshore tax evasion for good.”
Under the amnesty, introduced in July last year, those who came forward voluntarily must now pay any unpaid tax, plus interest, and a 10 per cent fine.
HMRC says it is now acquiring data on offshore accounts requested from over 300 banks in countries all over the world.
Around 100,000 people are believed to have offshore income. The HMRC expects to raise £500 million over three years as a result of the people who have come forward voluntarily and much more from those who have not. In 2007, a similar disclosure scheme raised £450 million from 45,000 people.
It is widely believed that the taxman pushed back the initial deadline from November 30 last year because so few people came forward. More than 1,000 of those who have come forward did so on January 4 itself.
HMRC said that it was not disappointed with the numbers, adding that the current scheme had dealt with much more niche banks and a much smaller client base than in 2007.
However, it admitted that the process of chasing up those who have not come forward would be expensive and take months or even years.
It added that people who had not yet disclosed offshore accounts should still do so since volunteering information was likely to invite a lower penalty than if they were caught out.
There has been an international crackdown on tax evasion via offshore accounts since the G20 summit in March last year, when the Organisation for Economic Co-operation and Development pledged to create greater tax transparency around the world.
Last month, Italy said it had raised €95 billion (£86 million) from a tax amnesty which it said had repatriated 98 per cent of illegally-held overseas money. That scheme has now been extended until April.
From Times Online
Francesca Steele
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