The HMRC has continued its crackdown on tax avoidance this tax year, with a record amount of investigations into British taxpayers offshore assets and income; which have been followed by the HMRC’s record net income of £560million.
Equating to over half a billion pounds, the HMRC have drastically enhanced their offshore investigation procedures. The primary focus of the HMRC’s investigations has been high-net-worth individuals and businesses with undeclared offshore interests.
A key source of the HMRC’s success has been the Global Reporting Standards Initiative. Since the initiative was launched in 2017, taxpayer’s information’s has been exchanged between over 50 jurisdictions.
The strict liability offence has also been identified as a key component to the HMRC’s success. The legislation that was put into action in 2018 means that the HMRC have an increased ability to prosecute taxpayers for offshore tax evasion.
It is expected that the HMRC’s investigation scope will continue to expand over the coming years.
British taxpayers that work or/and live abroad are thought to be one of the most at risk segments for HMRC scrutiny.