Crime Solicitors

The Chancellor has announced that tax avoidance using overseas tax havens is to become a criminal offence, the Daily Mail reports.

George Osborne was addressing a meeting of finance ministers in the US when he made the announcement.

Tax evasion is already illegal and costs the UK an estimated £5 billion every year.

As much as £15bn could be clawed back in personal tax and national Insurance contributions by making hiding assets in overseas tax havens illegal.

The new law will enable HMRC to assume that if tax is not paid on financial assets held offshore, the lapse was intentional.

UK tax inspectors currently have to prove any failure to pay tax on income and financial assets held offshore was intentional. Proving that not paying tax on overseas assets was intentional has been difficult in many cases, however.

Mr Osborne said:

“We are changing the balance of the law so HMRC don’t have to prove someone intended to hide their money offshore to evade tax; just that they did so and didn‘t pay tax.

“The message is clear with this new criminal offence: if you are evading tax, there is no safe haven and we will find you.”

The Finance Bill is currently passing through the House of Commons and is published on Monday (14/04/14).

The move to outlaw tax evasion in offshore tax havens is part of a wider crackdown on tax evasion by the G20 economies.

Anyone now hiding income and financial assets overseas without declaring it to HMRC will automatically be deemed to have committed a criminal offence.

Mr Osborne said that it was “totally unacceptable” for people who were liable to pay tax in the UK not to pay it.

“The vast majority of wealthy people pay their taxes and their share of income tax has been going up.”

The UK has already brought into line its own overseas territories which are tax havens, such as the Isle of Man.

Offshore tax havens have not only been popular with individuals, but also offshore companies and asset management companies.

Individual and company assets may be concealed via a network of companies based in a series of different tax havens, making tracing the assets complex.

Many offshore companies also invest in property in the UK, with the landlord/freeholder being a nominal company based offshore and managed by an offshore asset management company.

This can mean that leaseholders of property owned by an offshore freeholder may encounter difficulty if the property is left in disrepair, as action may have to be taken in different jurisdictions.

Duncan Lewis Criminal Lawyers

Duncan Lewis criminal lawyers can advise at any stage of a charge for fraud or tax evasion ? and our criminal team regularly visits police stations, courts and prisons.

Duncan Lewis has four offices across London and one of our criminal lawyers can be with you in 45 minutes to advise on criminal charges.

For expert legal advice on criminal law and representation contact Duncan Lewis criminal lawyers on 020 7923 4020.

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