Dave Hartnett explains the new penalties for tax evasion
From April taxpayers who hide assets and income abroad could be hit by tougher penalties from HMRC. The maximum penalty for offshore tax evasion is going up to 200% of the tax due – twice the current rate.
The new penalties will apply for tax periods commencing on or after 6 April 2011 and will apply to income tax and capital gains tax. They will affect Self Assessment returns due to be filed by January 2013.
Under the existing penalty framework penalties take into account the behaviour of the taxpayer (whether the taxpayer has taken reasonable care whether the inaccuracy or failure was deliberate and whether the taxpayer took steps to conceal their action) and the amount of tax lost.
The changes to the law introduce an additional element into the penalty equation: the tax transparency...
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Dave Hartnett explains the new penalties for tax evasion
From April taxpayers who hide assets and income abroad could be hit by tougher penalties from HMRC. The maximum penalty for offshore tax evasion is going up to 200% of the tax due – twice the current rate.
The new penalties will apply for tax periods commencing on or after 6 April 2011 and will apply to income tax and capital gains tax. They will affect Self Assessment returns due to be filed by January 2013.
Under the existing penalty framework penalties take into account the behaviour of the taxpayer (whether the taxpayer has taken reasonable care whether the inaccuracy or failure was deliberate and whether the taxpayer took steps to conceal their action) and the amount of tax lost.
The changes to the law introduce an additional element into the penalty equation: the tax transparency...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
