Take ‘tax amnesty’ chance while you can, says advisor

A leading Lancashire tax advisor has urged people with money in overseas tax havens to make a full disclosure to the tax authorities, warning that it’s only a matter of time before HMRC catches up with them.

The agreement will see an automatic exchange of information on people who have bank accounts on the island.

David Bennett, tax partner at Moore and Smalley Chartered Accountants and Business Advisors, said: “This is just the latest in a series of initiatives the government is using to encourage voluntary disclosure through bi-lateral agreements, focused disclosure schemes and increased use of technology to gather information about tax payers.

The government’s agreement with the Isle of Man follows a number of other bi-lateral agreements of co-operation in recent years with countries including Liechtenstein, Belize, San Marino and the British Virgin Islands. It is currently also negotiating agreements with Jersey and Guernsey. This forms part of HMRC’s efforts to close the ‘tax gap’, the difference between the tax it could collect and the tax it should collect.