Offshore tax amnesty extended by HMRC
Brits with offshore bank accounts that they have failed to declare to the taxman have extra time to own up to their secret cash stashes.
The current offshore amnesty was due to end on Monday (November 30) and anyone earning interest on offshore cash that they have failed to disclose to HM Revenue and Customs faces tax penalties.
Now, the deadline is extended to January 4, 2010 with any outstanding tax payments due by March 12.
HMRC has details of 100,000 offshore accounts
HMRC had threatened preferential terms will not continue after that date.
An HMRC spokesman said: “The reason we have extended the deadline is to allow more time for banks to write to their customers. This is what they have told us they need.”
The New Disclosure Opportunity amnesty started on September 1, and under the amnesty, individuals with offshore accounts must pay all outstanding taxes and duties, interest and penalties plus a 10% penalty of the unpaid amount.
Account holders who do not come forward may be liable for 100% of the tax due as a penalty and could face a criminal investigation for tax evasion.
HMRC is seeking details of 100,000 accounts with around 20,000 having hidden assets. Over 300 banks and financial companies have handed over details about their customers’ accounts.
Amnesty take up may be disappointing
The Daily Telegraph reports that about 20 institutions are still refusing to co operate with HMRC demands for customer details and are appealing against having to surrender the information.
Figures from the TUC suggest that the UK economy loses £4 billion in uncollected tax a year through offshore tax havens.
The NDO is the second similar amnesty offered in the UK, but HMRC says that it will be the last.
The initial disclosure regime, which closed in 2007, raised £400m for the Treasury after 45,000 savers came forward.
However this time, it is rumoured the take up has been small - for example perhaps just 27 people with assets in Liechtenstein, that is part of another tax amnesty.
