An article in Taxation Magazine on 23 January 2014 reported that HMRC have written to people they believe may hold bank accounts in the Cayman Islands. These letters encourage people to come forward now and declare any previous tax irregularities.
The letters warn potential Cayman Islands bank account holders, who are UK resident, that if they do not respond to the taxman within 30 days, then they could be subject to a detailed tax investigation. The taxman warns that this could lead to criminal prosecution. The letters go on to invite people to make a disclosure going back over the last 20 years. This follows hot on the heels of the Tax Information Exchange Agreement which the UK signed with the Cayman Islands on 5 November 2013. Unusually HMRC appears to have come out of the blocks very quickly in this particular case: suggesting that the Cayman Islands’ banks and other financial institutions have already provided some very specific information.
What does this mean to me?
If you have received one of these letters, then you need to take specialist advice immediately. Even if you don’t have a Cayman Islands bank account, or have no irregularities in your tax affairs, you are likely to be subject to a detailed and intrusive tax enquiry – if you do not deal with this matter properly and promptly. If you do have historic tax problems then there are some highly beneficial disclosure methods available to you.
How can Lynam Tax Disclosure Experts help me?
Our tax investigation specialists have an enormous amount of experience in dealing with HMRC tax disclosures. In particular, we have dealt with a huge number of cases involving offshore bank accounts in recent years. We are dealing with a high proportion of all cases dealt with under the Liechtenstein Disclosure Facility: which could be of enormous benefit to anyone who has received an HMRC Cayman Islands letter.
What should I do now?
For a totally discreet consultation call Paul Lynam today on 0845 643 9997
or Andrew Nutbrown on 07718 778710
*Initial discussions are on a wholly confidential basis. They are free and without obligation. We are ready to help you now!