A4.575B Penalties in respect of offshore asset transfers

Administration and compliance

A4.575B Penalties in respect of offshore asset transfers

A4.575B Penalties in respect of offshore asset transfers

The general penalties relating to offshore matters (see A4.575A) vary according to the transparency of the jurisdiction in which the income etc arises or is hidden, and higher penalties apply where HMRC is less likely to detect non-compliance. As more overseas territories enter into agreements to provide greater automatic exchange of information with the UK under the Common Reporting Standard, HMRC considers that there is a risk that money and investments will be moved from those territories to others that have not entered into such agreements in order to continue to 'hide' past failures to pay tax lawfully payable. A further penalty (the 'offshore assets moves' penalty) is imposed for relevant offshore asset moves on or after 27 March 2015, irrespective of whether the conduct giving rise to the 'original penalty' occurred before or after that date, but only in cases where the original penalty reflected a deliberate failure1.

The additional penalty is triggered where:


    (a)     a person is liable for an earlier penalty, where the behaviour is, or is classed as, deliberate (or in the case of failure to correct, the person was aware at any time during the RTC period that at the end of the 2016/17 tax year P had relevant offshore tax non-compliance to correct),

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