Offshore penalties, sanctions and criminal offences—outline

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Offshore penalties, sanctions and criminal offences—outline
  • The offshore penalties regime
  • Increased civil sanctions for tax evaders
  • Changes to the offshore penalties regime
  • Offshore tax errors, etc: publishing details of deliberate tax defaulters
  • Asset-based penalty
  • New criminal offences for offshore tax evaders
  • What are the criminal offences?
  • What do the offences apply to?
  • Exception for amounts reportable under CRS
  • More...

Offshore penalties, sanctions and criminal offences—outline

STOP PRESS: The All-Party Parliamentary Group on Anti-Corruption & Responsible Tax, which was established in June 2020 is currently researching more effective ways of targeting the enablers of failed tax avoidance planning. For more information, see the policy paper: Ineffective tax avoidance: targeting the enablers.

This Practice Note provides an overview of the following measures:

  1. The offshore penalties regime

  2. Increased civil sanctions for tax evaders

  3. New criminal offences for offshore tax evaders

  4. New civil sanctions for enablers of offshore evasion

  5. New corporate offence of failure to prevent the criminal facilitation of tax evasion

  6. New legal requirement to correct past offshore tax non-compliance

For full details, please refer to the related Practice Notes, existing and draft legislation and the consultation documents.

For details of the current penalties regime, see the Tax penalties, interest and time limits subtopic.

See also: Timeline of penalties, sanctions and criminal offences in relation to offshore tax matters.

The offshore penalties regime

A tougher regime imposing higher penalties applies to liabilities arising from 6 April 2011, where non-compliance involves an offshore matter and the offshore territory in question is not considered to have the highest level of information-sharing arrangements. The level of penalty is based on the type of behaviour that leads to the understatement of tax, and is linked to the tax transparency of the territory in which the income or gain arises.

The

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