Funds held in offshore financial centres are under scrutiny and this is set to intensify as we enter an era of global tax transparency. In the new world of tech-enabled tax transparency tax authorities around the world will soon have access to more data than ever before so now is the time to ensure you are fully tax compliant.
Countries that were early adopters of big-data analytics as a tool to tackle tax evasion, such as the UK, will soon gain access to more data than ever before. The UK’s award-winning big-data system ‘Connect’ has already been credited with helping HMRC collect an additional GBP3 billion of tax, and it is said to hold more information than the British Library. The system will take the data it receives from other jurisdictions under automatic exchange of information agreements and – at the click of a button – connect it with HMRC’s records to detect anomalies, highlighting areas where the tax authority can launch enquiries.
Unfortunately, there may be circumstances, particularly for clients in Asia, where taxpayers are not eligible for the full favourable terms under the existing disclosure facilities - the Liechtenstein Disclosure Facility or the Isle of Man, Jersey or Guernsey Disclosure Facilities.. However, in all cases, it is better for clients to come forward on their own terms before HMRC comes to them. Doing nothing is no longer an option.
In the full article Nisha Singh advises Asian clients to embrace the era of global tax transparency and disclose their UK tax liabilities.
Originally published in the STEP Journal, Volume 23, Issue 2