The maximum penalty for offshore tax dodging will double to 200% of the unpaid tax, the government has announced in its pre-Budget report.
The plan is one of 14 separate new measures announced aimed at saving as much as £5bn in lost tax every year.
At the moment the maximum fine that can be levied by HM Revenue & Customs (HMRC) is 100%.
HMRC also revealed an estimate of tax evasion for the first time, saying it cost £40bn in 2007-08.
“Legislation will be brought forward to ensure that those who fail to declare offshore tax liabilities will face the tough penalties attracted by deliberate tax evasion,” the government said.
“There will also be a new requirement to notify HMRC when opening offshore bank accounts in certain jurisdictions, supported by a separate penalty regime.
“Evading tax offshore could therefore result in combined penalties of up to 200% of the unpaid tax,” it added.
Via BBC News.
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