HMRC Consults On Strict Liability Tax Penalties
HM Revenue and Customs (HMRC) is consulting on the design of a proposed new strict liability criminal offence for those who fail to declare taxable offshore income and gains.
Under the plans, magistrates could be given the power to impose an unlimited financial penalty and a custodial sentence of up to six months.
In future, HMRC would only need to demonstrate that the income was taxable and undeclared, rather than that tax was deliberately evaded, as under the current rules.
The Government’s view is that the offence should only apply to income tax and capital gains tax (CGT), but that this should be kept under review.
In his foreword to the consultation document, David Gauke, the Financial Secretary to the Treasury, wrote: “I accept that it is a tough sanction, and rightly so. Offshore tax evasion has been a blight for too long, and it is time that those who exploit offshore arrangements to avoid paying their fair share face the consequences of their actions.”
The Government is interested to hear from tax and legal professionals and those involved in offshore investments, including taxpayers who may be affected by the new measure. The consultation will close on October 31, 2014.
Source: tax-news
