INTERNATIONAL TAX PLAZA - HMRC has opened consultations on a package of civil and criminal options to tackle offshore tax evaders and the enablers of offshore tax evasion

(July 16, 2015)

On July 16, 2015 the UK HMRC opened consultations on a package of civil and criminal options to tackle offshore tax evaders and the enablers of offshore tax evasion. The government announced four consultations as part of its publication Tackling Evasion and Avoidance. These take forward HMRC’s strategy for tackling offshore evasion, No Safe Havens.

The four consultations are:

· Tackling offshore tax evasion: Strengthening civil deterrents for offshore evaders

· Tackling offshore tax evasion: Civil sanctions for enablers of offshore evasion

· Tackling offshore tax evasion: A new corporate criminal offence of failure to prevent the facilitation of evasion

· Tackling offshore tax evasion: A new criminal offence for offshore evaders

According to the press release the consultations give further detail on how the options above will work in practice and seek feedback on their reasoning, structure and effect. HMRC would be interested to hear from tax and legal professionals, and those involved in offshore investments, including those who may be affected by the new proposals.

Tackling offshore tax evasion: Strengthening civil deterrents for offshore evaders

Duration of the consultation: July 16 to October 8, 2015

The Government has published this consultation on options to further strengthen civil sanctions for those evading tax by using non-UK territories to hide taxable income, gains and assets offshore.

The consultation document discusses a.o. the following subjects:

· Changing the way that the penalty is calculated for offshore non-compliance

· Non-financial deterrents

· Assessment of impacts

Click here to be forwarded to the consultation document.

Tackling offshore tax evasion: Civil sanctions for enablers of offshore evasion

Duration of the consultation: July 16 to October 8, 2015

The purpose of this consultation is to find appropriate, proportionate ways of levying civil sanctions against those who deliberately enable offshore tax evasion. We welcome views on defining “enabler”, as well as comments on the design of the proposed sanctions.

The consultation document discusses a.o. the following subjects:

· What is an enabler?

· Current civil sanctions available to HMRC – their scope and limitations

· Proposed sanctions – a penalty for deliberate enablers

· Proposed sanctions – naming deliberate enablers

· Assessment of impacts

And contains the following annexes:

· Annex A - Existing civil sanctions for evaders

· Annex B - Money Laundering Regulations – further details

Click here to be forwarded to the consultation document.

Tackling offshore tax evasion: A new corporate criminal offence of failure to prevent the facilitation of evasion

Duration of the consultation: July 16 to October 8, 2015

The Government wants to ensure that corporations can be held criminally responsible for failing to prevent their agents from facilitating tax evasion.

The consultation document discusses a.o. the following subjects:

· Scope of the new offence

· Defences to the new offence

· Assessment of impacts

Click here to be forwarded to the consultation document.

Tackling offshore tax evasion: A new criminal offence for offshore evaders

Duration of the consultation: July 16 to October 8, 2015

Following consultation in 2014, a further consultation on a new strict liability offence for failing to declare taxable offshore income and gains, which takes into account responses to the 2014 consultation and publishes draft legislation for comment.

The consultation document discusses a.o. the following subjects:

· Overview of responses to the 2014 Consultation

· Proposed model and further consultation

· Draft legislation

· Assessment of impacts

And contains the following annexes:

· Annex A - List of Stakeholders consulted

· Annex B - Responses to the 2014 consultation

· Annex C - HMRC’s criminal investigation policy

Click here to be forwarded to the consultation document.

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