The 100 countries which signed up to the Common Reporting Standard have given HMRC three million reports of offshore financial interests since September 2017.
The Common Reporting Standard (CRS) came into effect in Autumn 2017. It’s an international agreement involving over a hundred countries. They each gather financial data from financial institutions and service providers operating in their jurisdictions. They then automatically exchange that information with all the other signatory tax authorities. It’s a massive global financial data collection and sharing exercise. All of the data relating to UK citizens ends up with HM Revenue and Customs.
HMRC reports that in 2018 it was given reports about the offshore financial interests of over 3 million UK residents, or the entities they control. This involved nearly 6 million individual records: containing details of offshore financial arrangements: including offshore bank accounts.
The first CRS information swap was in September 2017. Forty-nine countries reported that time. The second round, in September 2018, involved about 100 jurisdictions. The next round, in September 2019, will involve at least that many, and maybe more.
What does this mean for me?
If you have offshore bank accounts or investments, and your tax affairs in the UK are not fully compliant, then it looks like it is now only a matter of time before HMRC discover you. If do not make a voluntary disclosure soon then you are at risk of an intrusive in-depth tax investigation, extremely harsh financial penalties, and possibly prosecution – bringing potential imprisonment and confiscation of your assets.
How can Lynam Tax Disclosure Experts Help Me?
Lynam Tax specialists have huge experience in successfully assisting clients in making voluntary disclosures relating to offshore income and assets. We have advised that a very large number of clients regarding the Worldwide Disclosure Facility. We can ensure that you get the best deal currently available.
*Why not have a free confidential discussion with one of our experts right now?
Paul Lynam: 0845 643 9997
Andrew Nutbrown: 07718 778710