FA 2010 analysis – Penalties for offshore income etc

This year's first Budget which is likely to be followed quite quickly by another following the forthcoming General Election from whichever party gains power contained proposals to substantially increase the tax-geared penalties in certain circumstances where structures in so-called tax havens are used to facilitate tax evasion. These proposals became law in a speedily enacted FA 2010 which was passed in early April before Parliament was dissolved in preparation for the Election. Before considering these changes in detail it will be useful to set them in context.

International developments

In the year 2000 the Financial Action Task Force — an inter-Governmental Agency established by the G7 countries to develop policies to combat money laundering and terrorist funding — published a list of some 60 non-cooperative countries or territories. Shortly thereafter the OECD published its own list of...