HMRC has taken a step back from their plans to introduce a ‘strict liability offence’ of failing to declare taxable income and gains arising offshore.
The HMRC Autumn Statement, released on 3 December 2014, seems to indicate that HMRC has had a change of heart. It appears that the initially discussed measures to introduce a ‘strict liability offence’ of failing to declare taxable income and gains arising offshore have been dropped.
The severe plans were first outlined in HMRC’s April 2014 publication ‘No Safe Havens – HMRC Offshore Evasion Strategy’ and further details provided in an August 2014 consultation document. In the publications HMRC outlined that it wanted to introduce a new strict liability criminal offence for those who did not declare offshore capital gains and income.
A strict liability offence meant that just the act itself warranted the imposition of a criminal sanction regardless of why the individual broke the rules. The proposal would have meant people could have been found guilty of a criminal offence who had no idea that they had committed a criminal act
A large part for the reason for HMRC to drop the proposal was the outcry from the public and tax professionals who viewed the concept as largely harsh and unfair.
Europa Trust Company encourages its readers to seek professional tax advise from established and reputable companies or tax professionals.
