Deadline draws near for taxpayers to respond to HMRC letters following UK/Swiss agreement
HMRC’s Offshore Coordination Unit (OCU) has sent 9,000 letters to taxpayers who have a beneficial interest in Swiss assets or investments, following the receipt of information from Swiss banks under the UK/Swiss tax agreement. HMRC has given recipients until 1 November 2013 to confirm compliance with UK tax laws, and failure to do so may result in an investigation.
HMRC has been receiving data from Switzerland on a monthly basis since 25 July 2013. According to BDO, the speed with which the OCU have begun to send out letters shows that HMRC is ‘serious about clamping down on offshore tax evasion’. Dawn Register, tax director in BDO’s tax investigations team, said: ‘Many account holders will have ticked the “voluntary disclosure” option without reading the small print and therefore may not have started a disclosure process. It is essential that those who have not disclosed or checked their UK tax returns do so immediately.
‘It is highly likely that serious fraud investigations or even criminal actions will be brought against those who persistently fail to declare offshore assets. As the letters are being sent far and wide, some account holders will have already disclosed their funds and so do not need to take any further action; however, it is essential that recipients contact a tax adviser before 1 November to ensure they take appropriate action.’
Deadline draws near for taxpayers to respond to HMRC letters following UK/Swiss agreement
HMRC’s Offshore Coordination Unit (OCU) has sent 9,000 letters to taxpayers who have a beneficial interest in Swiss assets or investments, following the receipt of information from Swiss banks under the UK/Swiss tax agreement. HMRC has given recipients until 1 November 2013 to confirm compliance with UK tax laws, and failure to do so may result in an investigation.
HMRC has been receiving data from Switzerland on a monthly basis since 25 July 2013. According to BDO, the speed with which the OCU have begun to send out letters shows that HMRC is ‘serious about clamping down on offshore tax evasion’. Dawn Register, tax director in BDO’s tax investigations team, said: ‘Many account holders will have ticked the “voluntary disclosure” option without reading the small print and therefore may not have started a disclosure process. It is essential that those who have not disclosed or checked their UK tax returns do so immediately.
‘It is highly likely that serious fraud investigations or even criminal actions will be brought against those who persistently fail to declare offshore assets. As the letters are being sent far and wide, some account holders will have already disclosed their funds and so do not need to take any further action; however, it is essential that recipients contact a tax adviser before 1 November to ensure they take appropriate action.’
