HMRC received 9.5m disclosures from overseas tax authorities under the Common Reporting Standard (CRS) in the 12 months to 31 December 2022, according to figures obtained by Pinsent Masons, up from 6.4m in 2019 (an increase of almost 50%).
The firm reports that the international exchange of data has expanded in recent years as more jurisdictions have signed up to the CRS. Currently, over 120 countries have committed to the exchange of information, leading to more than 5,400 bilateral exchange relationships. This contrasts with the original 58 signatories back in 2017, the first year of reporting.
Abigail McGregor, Legal Director at the firm, commented: ‘The increase in disclosures HMRC has been receiving since 2021 can partly be attributed to the expansion of the Common Reporting Standard to the majority of the world’s major economies. Many of those jurisdictions are also smoothing out their reporting systems and are therefore improving their rate of compliance with the standard.’
Taxpayers can disclose untaxed offshore assets via HMRC’s contractual disclosure facility (where there is deliberate behaviour) or the digital disclosure service. The firm notes the potentially reduced penalties for voluntary disclosure and co-operation with HMRC, and the risk of exposure to the offshore penalty regime where HMRC discovers offshore evasion.
HMRC received 9.5m disclosures from overseas tax authorities under the Common Reporting Standard (CRS) in the 12 months to 31 December 2022, according to figures obtained by Pinsent Masons, up from 6.4m in 2019 (an increase of almost 50%).
The firm reports that the international exchange of data has expanded in recent years as more jurisdictions have signed up to the CRS. Currently, over 120 countries have committed to the exchange of information, leading to more than 5,400 bilateral exchange relationships. This contrasts with the original 58 signatories back in 2017, the first year of reporting.
Abigail McGregor, Legal Director at the firm, commented: ‘The increase in disclosures HMRC has been receiving since 2021 can partly be attributed to the expansion of the Common Reporting Standard to the majority of the world’s major economies. Many of those jurisdictions are also smoothing out their reporting systems and are therefore improving their rate of compliance with the standard.’
Taxpayers can disclose untaxed offshore assets via HMRC’s contractual disclosure facility (where there is deliberate behaviour) or the digital disclosure service. The firm notes the potentially reduced penalties for voluntary disclosure and co-operation with HMRC, and the risk of exposure to the offshore penalty regime where HMRC discovers offshore evasion.
