UK: HMRC attack offshore scheme

Two 39 year old men have today been questioned by HM Revenue & Customs (HMRC) on suspicion of offshore tax evasion believed to have cost the Exchequer over £1 million.

The move follows an investigation into a number of business and personal offshore bank accounts being operated by the individuals.

Two private residences, in Wigan and Hyde, Greater Manchester, have been searched along with business premises in Worsley and an address in Gateshead.

Roy Clark, Director Criminal Investigation for HMRC, said: "This is an important and significant operation. It reflects our determination to pursue criminals who may think they are beyond our reach. Tax evasion is not a victimless crime. Honest citizens have to meet the cost of the tax that is evaded by a minority who are dishonest. Tax cheats deprive our public services of vital funding. Those who have hidden income and gains should make a prompt and complete disclosure to HMRC."

Last year, UK HMRC ordered all offshore subsidiaries of UK banks to report all UK resident account holders. The banks complied - without any reference to customers - and HMRC immediately demanded that all UK residents complete a disclosure. However, HMRC failed to take account of the fact that there are many non-UK residents, including citizens who are non-UK resident, that for reasons of convenience or security have bank statements sent to an address in the UK and their systems did not have anywhere for the making of a declaration that the disclosure regime did not apply to them.

Although HMRC do not expressly say so, it appears that this action arises out of a non-disclosure once HMRC had been made aware of an account. The statement from Roy Clark also suggests that there is a degree of threat to those who have yet to make their disclosures - even though the deadline passed several weeks ago.

A man arrested at his home in Hyde, has been bailed pending further investigation and possible criminal proceedings.