Why you need to review your tax position
1. Increasingly complex and constantly changing UK tax legislation
- The rules concerning offshore matters have changed drastically and rapidly.
- Heavy anti-avoidance measures have been introduced, aimed at offshore trust structures and overseas property structures.
- You could be inadvertently affected by unknown issues created by third parties (e.g. changing residence status, changes to complex trust rules that have not been appreciated).
2. Increasing global transparency
- The new Common Reporting Standard is now in force, which is an automatic exchange of financial information between countries.
- HMRC’s ‘connect’ software allows the collection and analysis of millions of lines of data means you might be susceptible to investigation, even if you do not realise you have a tax issue.
3. Penalties and other consequences
- HMRC is prosecuting more cases and demanding higher penalties for offshore offences (up to 300%).
- You could be at risk of reputational damage from HMRC’s ‘Name and Shame’.