HMRC fires final 200% tax warning to offshore evaders

Tax evaders hiding money offshore have a week to own up or face tax of 200% says HMRC, in its final warning before the end of the financial year.

From 6 April, penalties for offshore non-compliance for income and capital gains tax will be linked to the tax transparency of the country involve.

There will be increased penalties in place for under-declared income and gains from territories which do not automatically share tax information with the UK.

As a result, evaders face being taxed at 200% on undeclared money from as early as next week.

David Gauke, exchequer secretary to the Treasury, says: "Time is running out for anyone going offshore to evade tax. Get your tax affairs in order."

Dave Hartnett, permanent secretary for tax at HMRC, says the clampdown on offshore tax evaders is the next step in increasing the deterrent against offshore non-compliance.

"Those who decide to take the risk will feel the full force of HMRC's new penalties."