HM Revenue and Customs has revealed around 10,000 people have notified them of their intention to disclose previously undeclared offshore income and gains under its New Disclosure Opportunity (NDO).
The NDO, which closed at midnight on 4 January, provided offshore investors the opportunity to declare and pay any unpaid tax while only suffering a 10% penalty.
HMRC said it is now receiving data on offshore accounts requested from over 300 banks and is using this to identify those who did not come forward. Those caught will face penalties of up to 110% of the tax not paid.
While announcing the number of investors who had chosen to come forward, Treasury Minister Stephen Timms called offshore tax evasion “morally unacceptable.”
"Hiding money in offshore accounts to evade tax is economically and morally unacceptable,” said Timms.
“It robs public services of funding and places an unfair burden on the honest majority of taxpayers.
“Some people will still be tempted, and that is why the Government will bring forward measures during 2010 to build on the significant progress made both in the UK and globally during 2009 in closing down offshore tax evasion for good."
Threat to intermediaries
HMRC’s permanent secretary for tax, David Hartnett, warned that intermediaries whose clients held undeclared money offshore may may find themselves in the firing line.
“We are also examining information about offshore accounts in order to help us identify intermediaries who have assisted UK residents in hiding money offshore," he said, adding: “It is very important to remember, when someone comes forward voluntarily, the penalty is always lower than when we catch the evader.”
