Monday, November 30, 2015
UK to Remove "Intent" for Criminal Tax Evasion; Criminalize Corporates Failing to Prevent Tax Evasion; Increase Civil Penalty to 60%
Download UK Mid Year Budget Proposals - Avoidance and Evasion Tax evasion and compliance (at page 122)
3.77 A new criminal offence for tax evasion – The government will introduce a new criminal offence that removes the need to prove intent for the most serious cases of failing to declare offshore income and gains. (Finance Bill 2016)
3.78 New civil penalties for offshore tax evaders – The government will increase civil penalties for deliberate offshore tax evasion, including the introduction of a new penalty linked to the value of the asset on which tax was evaded and increased public naming of tax evaders. (Finance Bill 2016)
3.79 New civil penalties for those who enable offshore evasion – The government will introduce civil penalties for those who enable offshore tax evasion, including public naming of those who have enabled the evasion. (Finance Bill 2016)
3.80 A new criminal offence for corporates failing to prevent tax evasion – The government will introduce a new criminal offence for corporates which fail to prevent their agents from criminally facilitating tax evasion by an individual or entity.
3.81 An additional requirement to correct past offshore tax non-compliance – The government will consult on an additional requirement for individuals to correct any past offshore non-compliance with new penalties for failure to do so.
3.82 Cash and the hidden economy – HMRC is publishing a call for evidence to seek a better understanding of what implications the trend away from cash has for tax compliance, and in particular evasion and the hidden economy.