HMRC have produced a factsheet about the higher penalties that HM Revenue and Customs (HMRC) may charge for Income Tax, Capital Gains Tax and Inheritance Tax when an offshore matter is involved.
HMRC may charge a penalty of more than 100% for:
an inaccuracy in a return or document a failure to notify chargeability to tax the deliberate withholding of information where a tax return is more than 12 months late when they involve offshore matters in certain categories of ‘territory’. Otherwise, the maximum penalty HMRC may charge is 100%.What HMRC mean by an ‘offshore matter’ and ‘territory’ is explained in the factsheet.
More information about penalties can be found in the following factsheets:
CC/FS7a, 'Penalties for inaccuracies in returns and documents' CC/FS11, 'Penalties for failure to notify' CC/FS18a, 'Penalties for failure to file annual and occasional returns and documents on time (including Self-Assessment tax returns for Income Tax)'The Fact Sheet can be found here.
