On 24 August 2016, the UK’s tax authority, Her Majesty’s Revenue and Customs, published a Consultation Document entitled “Tackling offshore tax evasion: A Requirement to Correct”. The consultation remains open for comments until 19 October 2016.
By the Consultation exercise, HMRC proposes to introduce new legislation in the UK requiring any person who has undeclared UK tax liabilities in respect of an offshore interest to correct that situation by disclosing the relevant information to HMRC, with new sanctions for those who ‘fail to correct’. HMRC’s aim is to get UK taxpayers with issues relating to offshore interests into a compliant position, if they are not already. At the end of the ‘Requirement to Correct’ period, in September 2018, there will be a single, simplified and tougher set of sanctions for offshore tax evasion.
The consultation takes forward HMRC’s strategy for tackling offshore tax evasion, ‘No Safe Havens’ (last updated in 2014).