Offshore disclosure deadline looms

People with offshore investments who have notified HM Revenue & Customs (HMRC) that they want to use the New Disclosure Opportunity (NDO) have just one week to make their disclosures online and to pay all tax, duties, interest and penalties owed in full.

To take advantage of this final opportunity to put their affairs in order at a favourable penalty rate of 10%, taxpayers must disclose online and pay the full amount due, including the penalty, by 12 March 2010.

Over the next few days HMRC will be writing to those who have notified to remind them to make a full disclosure and payment.

Once the scheme's doors are closed, those found to have undisclosed offshore assets will be subject to full tax investigation, penalties of up to 100% and in the most serious cases criminal prosecution.

HMRC has issued statutory notices to over 300 banks in the UK requiring them to provide relevant information about customers with offshore accounts. This information is starting to come in and it will be used to ensure that everyone pays the right tax.

Dave Hartnett, HMRC's Permanent Secretary for Tax said: "Taxpayers with offshore investments who have notified us of their intention to disclose have done the right thing, saving themselves 90% of the potential penalties for failing to disclose. They now need to follow through by making their disclosure online and paying in full all the taxes they owe."