HMRC launches podcast to scare tax evaders

HMRC has released a podcast to highlight its power to catch and punish tax evaders who ignore the opportunity to settle up any unpaid tax using the New Disclosure Opportunity (NDO).

Dave Hartnett, HMRC's permanent secretary for tax, has warned anyone who fails to come forward under the NDO will face an increased risk of prosecution.

He says the likelihood of being caught is great, due to the vast amount of information HMRC has to scrutinize offshore accounts.

Under the NDO, people making a complete and accurate disclosure of their untaxed offshore liabilities between 1 September and 12 March 2010 will have any penalty capped at 10%, or 20% if they failed to take up a written offer of a capped penalty under HMRC's 2007 Offshore Disclosure Facility (ODF).

Hartnett warns penalties will be much higher for those who do not come forward and stresses "there will not be another chance" to do so.

He says individuals who have lied about disclosure are more likely to be prosecuted and HMRC will probably probe their onshore accounts too.

"We are going to have information from the majority of banks operating in the United Kingdom. So, we're going to have a much bigger database from which to work," he says.

A letter sent to the banks informing them of the information HMRC requires, shows the huge amount of information that will be at the tax man's disposal to chase tax evaders.

Individuals' details to be surrendered include: name, address, date of birth, the date the account was opened or closed, plus the balance and any transaction information.

The podcast is available at: www.hmrc.gov.uk/podcasts.