Taxing matters

OFFSHORE ACCOUNTS

It is no surprise to find that HM Revenue & Customs (HMRC) is flexing its muscles with the banks and is doing its best to extend their reach for information beyond the five major UK banks where it had such success earlier this year. It is reported that they have had “exploratory” talks with 170 banks (this is odd—the last announcement said they were approaching 500) to assist them in deciding what to do next.

HMRC must be hard at work examining all the disclosure notifications which it received prior to 22 June and it will be even busier after 26 November, which is the date by which all the details must be delivered and the tax paid. It has until 30 April 2008 to decide whether or not to accept the disclosures and charge the reduced penalty or whether to start an enquiry into the taxpayer’s affairs. I expect that those who missed the June deadline or who miss the November deadline are in for an