Banks must disclose 'all offshore account details'

(25/06/09)

Over 300 banks and financial institutions have been ordered to pass the details of those customers who hold offshore accounts to HM Revenue & Customs (HMRC).

The legal ruling means that HMRC can now issue compulsory disclosure notices to the banks, ahead of its New Disclosure Opportunity (NDO).

The NDO offers people with unpaid taxes linked to offshore accounts or assets a final opportunity to make a complete disclosure, at favourable penalty rates. Those taxpayers who were not contacted by HMRC under the previous Offshore Disclosure Facility (ODF), in 2007, will be offered a penalty rate of 10%. Those who were contacted during the ODF but did not take advantage of the scheme will be offered a 20% penalty rate.

To use the scheme, a notification of the intention to disclose must be made to HMRC between 1 September and 30 November 2009. Those taxpayers notifying on paper can do so from 1 September to 30 November, while those notifying electronically can do so from 1 October to 30 November.

Disclosures can be then made from September 2009 to January 2010 on paper, or from October 2009 to 12 March 2010 electronically.

Once the NDO ends on 12 March, those taxpayers who have failed to come forward will be pursued by HMRC and will face penalties of between 30% and 100%, together with an increased risk of prosecution.