The net continues to close in around serious tax defaulters with large sums of cash stashed away in overseas bank accounts, according to a leading Midland tax expert.

HMRC have recently been successful in obtaining UK customer account details from four banks with offshore branches in Luxembourg, Austria, Belgium and the Channel Islands. This follows earlier successful applications against Barclays, Lloyds TSB, HBOS, HSBC, and Royal Bank of Scotland in 2006 and 2007 which was followed by the Offshore Disclosure Facility offered to taxpayers in 2007.

According to Paul Edwards, director of taxation at accountants and business advisers Horwath Clark Whitehill, HMRC have now obtained judgment from the Tax Tribunal to go ahead with these further account disclosures. 

He said: "This is their latest victory and it should be borne in mind that HMRC are attempting to obtain similar orders against all banks and building societies operating in the UK, of which there are believed to be about 500 in total, requiring them to submit information relating to UK resident customers with offshore accounts."

Mr Edwards also said that HMRC have announced a New Disclosure Opportunity which will be available between 1 September 2009 and 12 March 2010, although anybody who wishes to register must do so by 30 November 2009.

 "HMRC are principally looking for information about offshore accounts held by UK resident individuals who have hidden taxable income and gains offshore. The New Disclosure Opportunity will give the offshore account holders one final opportunity to disclose and put their affairs in order.

Customers who had not been written to by HMRC in connection with the ODF in 2007 and who take up this opportunity will be expected to pay the duties they owe, together with interest and a reduced penalty of 'only' 10% of the tax, which compares very favourably with the minimum 30% penalty that is likely to apply to individuals who decide not to come forward and are subsequently investigated by HMRC."

Horwath Clark Whitehill has set up a Helpline to assist anyone who needs advice in this area: the NDO Hotline number is 020 7842 7200.

Mr Edwards added: "It is clear that yet more resources are being employed by HMRC to scrutinise the tax affairs of high net worth individuals. The future is likely to see closer monitoring of serious tax defaulters, and the publishing of names of the worst offenders on the HMRC website is among the measures that will be taken."