“Enablers” of offshore tax evasion in the UK face tough new sanctions that came into force on January 1, 2017.
As part of new powers announced in the 2015 Budget, individuals or corporates who deliberately help others to evade paying tax could be fined up to 100 percent of the tax they helped evade or GBP3,000 (USD3,686), whichever is highest.
Furthermore, in 2017 the UK government is planning to introduce a new corporate criminal offense of failing to prevent the facilitation of tax evasion. In addition, companies will be held liable if an individual acting on its behalf as an employee or contractor facilitates tax evasion.
Meanwhile, taxpayers who do not correct past evaded taxes by September 30, 2018, face new penalties under new legislation. The Government is also consulting on a new requirement for businesses and individuals who create complex offshore financial arrangements that bear the hallmarks of enabling tax evasion to notify them to the tax authorities.