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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I had an off shore account 2000-2006.I didn't report

Customer Question

I had an off shore account for yrs 2000-2006.I didn't report it&didnt report the income.Is it civil or a criminal violation.What would be my liabilities.are there penalties?Is it criminal to have an off shore ¬ reporting it.if it's criminal does the statue
limitation kick in
Submitted: 2 years ago.
Category: UK Tax
Expert:  Tony Tax replied 2 years ago.
It is not an offence to have an offshore bank account. HMRC can and do press criminal prosecutions for failure to report income from an offshore account but not many to date.
You may have read in the newspapers, heard on the radio or seen on the television news the story of the Swiss banker who stole a list of account holders and sold it to the German and French tax authorities and it also ended up with HMRC. Of 150 odd investigations, there was one criminal prosecution. HMRC tends to prefer to get the offender to pay the tax, interest and penalties though they have had some flack from politicians about that.
If HMRC pressed a criminal prosecution, it would be ludicrous for them not to be able to recover the tax on the hidden income under the statute of limitations, given that it was the non-disclosure that gave rise to the prosecution.
Much depends on the circumstances of the case. If an individual knowingly completed and submitted incomplete tax returns, then the risk of criminal prosecution rises. If income was hidden offshore and not disclosed, then that is tax evasion which is a criminal offence. There are people who at least until recently believed that offshore income was not taxable in the UK. That's slightly different to siphoning income offshore and not declaring it.
I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.
Could I follow up with a chat
Customer: replied 2 years ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Tony Tax replied 2 years ago.
If you can give me a little more background information I'll let you know if a phone call would be worthwhile from your point of view.