PKF Accountants & business advisers have warned that prominent figures from the worlds of sport, entertainment, politics and business are on a HMRC "hit list" for investigation if they fail to disclose unpaid tax on earnings held in offshore accounts by 22 June 2007.
Investigators from HMRC's Special Civil Investigations unit are understood to be waiting for the 'Offshore Disclosure Facility', announced on 17 April 2007, (see Related News item below) to end in just nine weeks time before moving against a select group of wealthy high-profile people if they have not made use of the disclosure facility but, in HMRC's view, should have.
John Cassidy, PKF tax investigations partner, believes the intention is to name and shame celebrities to generate maximum publicity and discourage further tax avoidance. He says: "The A-list and those on the annual 'rich lists' will be hoping this is one list they've managed to stay off.
"We believe HMRC will target fewer than 100 of these top people because, after the initial blanket disclosures that the offshore facility is hoped to bring, their investigations teams are after quality rather than quantity as well as wanting to send a message to the public generally. HMRC is relishing the opportunity to target these people and clearly hoping its targets don't come forward before the deadline.
"As sport is an international industry with overseas opportunities, you can expect a number of footballers and other athletes to be on the list. The same is true of entertainment and they will also want to target the business community."
UK banks have been forced to supply vast amounts of data on their customers to HMRC in the last two years following several rulings by tax tribunals. Investigators have detailed records of transaction dates and amounts, so celebrities on the list are going to have to explain the source of income and show that tax was correctly paid. HMRC are likely to want to hold 'show trials' to set examples and even create an atmosphere of fear among tens of thousands of ordinary people who may have either moved money overseas or not repatriated it to the UK to avoid paying tax.
John Cassidy concludes that the only sensible option for anyone who has not fully declared their income in the past is to make a full voluntary disclosure to HMRC. But anyone contemplating this approach should seek expert advice on how to do it in a way that keeps penalties and risks to a minimum while reducing exposure to further investigation and prosecution.
Related news
New arrangements for offshore disclosure agreements announced
LITRG comments on offshore accounts facility
Links
Please register or log in to add comments.
There are not comments added