Franky on Finance

A new legislation which came quietly into effect in December, gives HM Revenue & Customs (HMRC) additional powers of search, seizure and arrest for unpaid tax, as well as the ability to force banks, lawyers and accountants to hand over information in relation to perceived serious tax fraud.  As the HMRC is currently advertising for Criminal Investigation Officers in London, Nottingham, Leeds, Manchester and Birmingham, it seems that these new powers will be put into use very soon.  Last year, about 45,000 people with bank accounts in tax havens such as the Cayman Islands, Jersey and the Isle of Man coughed up by the November 26 deadline offer by HMRC. Under this partial amnesty they paid their overdue taxes and fines capped at 10%, rather than the usual penalty of between 30% and 100%, and the possibility of a criminal conviction.  Those who have undisclosed taxes should seek financial advice or risk the possibility of hefty tax bills.