Offshore tax evasion

The government is determined to reduce incentives and increase penalties for those who do not pay the tax they should. As part of this the UK has contributed to the development of new international standards on transparency, which will give HMRC more information to find offshore tax evaders.

In parallel with the development of a more robust system of tax information exchange, the government has toughened the penalties which apply where tax is evaded and such evasion involves jurisdictions that do not have the highest level of tax transparency.

In order to provide taxpayers with a final opportunity to settle their affairs before the receipt of vast amounts of data under various international agreements, HMRC offered a worldwide disclosure facility, which was available until the end of September 2018.

This subtopic provides guidance on the following measures to tackle offshore tax evasion:

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Exchange of information for tax purposes
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Offshore penalties, sanctions and criminal offences
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Disclosure facilities and tax co-operation agreement
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Client notification obligations
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Registers of ultimate beneficial owners

For guidance on anti-avoidance provisions affecting the scope for international

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Private Client weekly highlights—21 November 2024

This week’s edition of Private Client highlights includes: (1) Wigglesworth v Beetson, in which the claimant failed in an action for estoppel and adverse possession; (2) the Hansard Society to host a briefing on parliamentary process for Assisted Dying Bill; (3) Khan v Khan, which considered family property and constructive trusts; (4) analysis of the Autumn Budget announcement to bring unused pension funds and death benefits within the scope of IHT; (5) Palmer v Sans, which found that there was no transaction at an undervalue where property was already held on trust for the transferee; (6) KA v FA (The Secretary of State for the Home Department intervening), where the court recognised an overseas adoption notwithstanding failure of common law test; and (7) Kireeva v Bedzhamov, in which the Supreme Court has confirmed the application of the immovables rule to English property.

Privy Council rules BVI company shares are not immovable property (Al Thani v Al Thani)

Private Client analysis: In a decision which will come as a relief to private individuals who own shares in BVI companies, the Privy Council has decided that section 245 of the BVI’s Business Companies Act 2004 does not have the effect of re-categorising shares as immovable property for the purposes of succession. Written by Kyle Bonnell, pupil at XXIV Old Buildings.

Supreme Court confirms application of immovables rule to English property

The Supreme Court has unanimously dismissed Ms Kireeva’s (Russian bankruptcy trustee’s) appeal to overturn the Court of Appeal’s’ decision regarding matters arising out of the bankruptcy of Mr Bedzhamov. Peter Declercq and Patrick Elliot, partners at DCQ Legal (who acted for Ms Kireeva), discuss the implications of the judgment.

UT finds FTT made errors when setting aside HMRC best judgment assessment (HMRC v Sintra Global)

Tax analysis: In Sintra Global, the Upper Tribunal (UT) set aside the decision of the First-tier Tax Tribunal (FTT) insofar as it related to a notice HMRC had issued to an individual making him liable for the payment of a civil evasion penalty charged against a company he was a director of. The UT found that the FTT had failed to follow the guidance provided by the Court of Appeal in Pegasus Birds in relation to the assessment the penalty was based on.