Tax Disclosure

Our practical and robust approach delivers the best possible outcome.

Types of disclosure

Voluntary Disclosure

Voluntary disclosure of unpaid or underpaid taxes will result in:

  • lower professional costs
  • lower penalties
  • allowance for negotiation for protection against criminal prosecution (in serious cases)

Prompted Disclosure

Prompted disclosures will usually carry higher penalties. It is important to seek professional advice, which will:

  • help prevent an HMRC data fishing exercise
  • ensure a high quality disclosure, which will result in lower penalties
  • enable negotiations with HMRC to achieve the best possible outcome
  • ensure the best defence against criminal prosecution (if necessary)

Why disclose now?

Increased chance of discovery

  • There is now an automatic exchange of financial information between countries; the Common Reporting Standard
  • HMRC’s ‘connect’ software allows the collection and analysis of billions of lines of data, meaning individuals are more susceptible to investigation by HMRC (whether correctly or not)

Consequences of non-disclosure

  • Higher penalties from HMRC for offshore offences (up to 300% penalty)
  • Reputational damage from HMRC’s ‘Name and Shame’
  • Change in HMRC stance (more prosecutions)

Contact us

Sean Wakeman
Sean Wakeman
Partner, Head of Tax Investigations