HMRC Issues Final Reminder For Offshore Disclosure Facility

Chris Owen

14 June 2007

As the June 22 deadline under the terms of the Offshore Disclosure Facility approaches, HM Revenue & Customs, the UK's tax authority, is writing to its customers to give them one final chance to own up to any unpaid tax. It said yesterday that around 200,000 letters were being sent out to UK residents with offshore bank accounts. HMRC said that, as of yesterday, they had received 8,180 notifications and issued 44,390 booklets on the topic. Under the offshore disclosure arrangements, taxpayers with previously undisclosed offshore bank deposits are required to pay all the tax, interest and a flat rate penalty of 10 per cent of the tax underpaid. After 22 June, HMRC will begin to investigate the details of 400,000 accounts held with offshore branches of EU and UK banks. Those who have not declared savings income will face fines of up to 100 per cent of tax and the chance of criminal prosecution.