Pictured: Jeff Millington, a BTG Tax director
There has been a jump in the number of people facing HM Revenue
& Customs tax (HMRC) investigations, according to BTG Tax.
The firm says it follows a move by HMRC to let it be known that
they have obtained yet more offshore banking information,
with up to 500,000 taxpayers holding accounts being identified.
And this time it is Switzerland, once known for its banking
secrecy, which is involved.
Jeff Millington, a BTG Tax director, said: "We have experienced
a sudden rise in the number of approaches we have had from UK
taxpayers who are under investigation by HMRC.
"All of these investigations have been under Code of Practice 9
(COP 9), where serious fraud is suspected. The consistent theme has
been that the taxpayer has held an offshore bank account in
Switzerland.
"It is believed that HMRC obtained the information as a result
of 308 information notices issued to the banks in the UK and after
data was exchanged with the French government last year."
Mr Millington said many of the recent COP 9 investigations had
scrutinised individuals who were resident and not domiciled in the
UK.
He went on: "A number of these have declared on their personal
returns that they are non-domiciled and have paid the remittance
basis charge. This is of great concern as it would appear that HMRC
consider anyone who holds an offshore account has possibly
committed serious tax fraud. This is not the case in many instances
but once an enquiry has been opened it can be very costly and
time-consuming to resolve."
He urged that, where appropriate, individuals should make a
disclosure under the Liechtenstein Disclosure Facility (LDF). This
is open to any person or company who has an offshore asset, where
it is believed that there is an underpayment of tax to HMRC.
Disclosures under the LDF guarantee immunity from prosecution for
tax evasion.
"On average, a disclosure under the LDF costs 15-20 per cent of
the total capital held in the offshore account," said Mr
Millington. "This compares with the 60-70 per cent of the capital
held offshore which someone might pay under a COP 9 investigation,
where they have evaded tax.
"It really does pay to have assistance from experienced
professionals."
For more information about BTG Tax, please visit their website
here: www.btg-tax.com