LNB News: Law Society response: HMRC discussion document on helping taxpayers get offshore tax right

The Law Society considers how HMRC might collect and use data and carry out its communications and compliance work effectively in order to support taxpayers in relation to their offshore tax obligations.

Key response points include:

• using offshore data has the potential to help taxpayers get their offshore tax right, but HMRC should consider the risks associated with incomplete or misleading data
• although it could be helpful for HMRC to inform a taxpayer’s tax adviser that the taxpayer has offshore assets, issues around taxpayer confidentiality (for example, where the taxpayer uses different advisers for advice and compliance) and agent authorisation would need to be considered
• appropriate prompts for taxpayers, including on tax returns themselves, could be helpful
• invitations could be provided to prompted taxpayers to contact HMRC along with links to relevant information
• in deciding whether more information about sources of income, amounts and payment dates should be required of taxpayers, consideration should be given to minimising any consequent additional compliance burden (for example, by including a de minimis threshold)
• an awareness campaign may be a good idea in the context of offshore tax, as well as dedicated information tailored to common scenarios

See Simon’s Taxes: A4.576

Source: HMRC discussion document on helping taxpayers get offshore tax right – Law Society response