 PKF advises offshore account holders to use NDO or risk an intrusive and costly investigation
24 September 2009: PKF Accountants & business advisers is warning offshore account holders who have not declared the income they receive to use the current tax amnesty now.
Although recent announcements by the Government and HM Revenue & Customs (HMRC) may just seem like more bluster and hollow threats, HMRC sees tax evasion and avoidance as becoming an increasingly big issue and, ultimately, the New Disclosure Opportunity (NDO) is likely to save you money.
 |
 | The political bidding war on who can be the toughest on tax avoiders began in earnest this week with the start of the party conference season. John Cassidy, tax investigations partner at PKF said, “We have all grown used to the rhetoric of political party conferences, but this year’s crop of announcements are shriller than ever before. They are intended to intimidate anyone who has not declared their offshore income, but I’m not convinced it will always work.” |
Stephen Timms, Financial Secretary to the Treasury, made it clear in his speech to the International Conference on Tax Analysis this week, that the current NDO is the last chance for offshore account holders to put their affairs in order. He also threatened that, “In the Pre-Budget Report we will spell out the consequences for those who don’t”.
On the same day, Dave Hartnett, Permanent Secretary for Tax at HMRC referred to the huge amount of intelligence being received and analysed from over 300 banks. He explained that “the game is fundamentally up” for those holding undeclared funds offshore and added that he would like new laws to ensure that all new bank accounts must be reported on tax returns with harsh penalties for those who fail to do so.
Commenting on the announcements, John Cassidy said, “HMRC has slowly been adopting the anti-avoidance tools used in the USA so it is no surprise to me that HMRC would like similar rules to the regulations currently used by the IRS. However, I doubt that ‘own up or else’ threats and emotive statements from politicians are very helpful. What we need is overt action from HMRC – perhaps Dave Hartnett’s comments herald the start of that, but otherwise there is the danger that some tax evaders will assume that the authorities are just crying wolf and that if they just sit tight, nothing will happen.
“HMRC missed a big opportunity with the previous amnesty. If it had followed up properly and publically on those individuals who didn’t use the Offshore Disclosure Facility, it would now be clear to evaders that using the NDO made good financial sense. Creating the Liechtenstein Disclosure Facility has also muddied the water and suggests that there may be similar bespoke deals with other tax havens in the future. Although any such regime will, by its very nature, affect relatively few people.
“Anyone who has not disclosed all their offshore income should look at their position rationally: it makes good financial sense to come clean now which, for the vast majority, means taking advantage of the New Disclosure Opportunity.”
– ends –
For further information, please contact:
Jane Murray, PR, 020 7065 0135, jane.murray@uk.pkf.com
Notes to Editors:
- PKF is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk.
- PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Guernsey) Limited is incorporated in Guernsey.
- PKF (UK) LLP is a member firm of the PKF International Limited network of legally independent firms. The PKF International Limited network has more than 14,650 people operating in 119 countries around the world.
|