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Tackling seems such an innocuous term, it's something that usually happens between sportsmen as part of a game in which they are both willing participants. Even children are allowed to do it.

When HMRC choose to tackle something you can be certain that whatever they are tackling will feel it and be changed forever. The last time I heard HMRC using the term tackling was when they were tackling managed service companies, and speaking as someone who was working in the industry that was 'tackled' it's not something you'd choose to do twice, or even once. International Rugby teams should take a leaf out of HMRC's book.

So how are HMRC actually going to go about 'Tackling Offshore Tax Evasion"? According to Deloitte, people that fail to pay taxes on offshore income or gains could face penalties of up to 200% of the tax evaded effectively doubling the current maximum penalty. It's true that for the time being they are offering a form of amnesty if you manage to tell them before they find out (reduced penalties rather than none), but the time in which that's possible is shrinking.

With increasing co-operation (in the form of information exchanges) between countries and more importantly the financial institutions within those countries HMRC are getting a better view of offshore tax evasion all the time. I would imagine that a lot of companies are considering getting a word in early to avoid the consequences.

The new penalty regime was expected to come in April next year, but with talk of an emergency budget in June and the Conservative government hungry to reduce the deficit we could be looking at something happening a lot sooner.

Hugo
@GabemUmbrella
28/05/2010