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08 August 2014 / Peter Vaines
Issue: 7618 / Categories: Features , Tax
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Taxing matters

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Peter Vaines on strict liability criminal offences from Mars, punitive penalties & disguised salaries

HMRC has published a guidance note entitled No Safe Havens 2014. It has caused a lot of trouble. However, the substantive document looks wholly uncontroversial—indeed it seems to be an excellent summary of how HMRC gains access to information on offshore accounts, making it pretty clear that if you have an offshore account, they will find it—and when they do, there will be serious consequences with penalties up to 200% of the tax evaded.

Of course, there should be criminal penalties for people who evade taxes; that is a crime and should be appropriately punished. So why has it caused trouble? It is because in the foreword there is a sentence which says that the government will introduce a new strict liability criminal offence that could mean jail for those who do not declare taxable offshore income.

The two offending words are “strict liability” so that you are guilty even if there was no intention to commit

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MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

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Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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