UK Tax Dodgers Fined 200% for Evaded Taxes
August 25, 2016 Taxation in UK
LONDON – The UK Treasury is cracking down on international tax evaders, with newly proposed rules seeing tax dodgers fined for twice the amount of taxes that they originally skipped.
On August 24th the UK Treasury released a consultation paper proposing significantly hiked penalties for tax cheats.
Under the newly proposed rules any taxpayers with undeclared assets, incomes, or interests hidden offshore could face penalties of 100 percent to 200 percent of the taxes owed, unless they come forward and clear up their outstanding obligations by September 2018.
The new penalties will be levied on the basis that the taxpayers has “failed to correct” their tax standing with tax authorities.
Currently the fines levied for hiding assets and incomes overseas can be reduced or even wiped away if the taxpayer is able to show that their tax dodging was a result of careless or accidental actions, instead of deliberate steps taken to evade their obligations.
The current proposal is the second time in two weeks that the Treasury has proposed tough new rules for tax evasion, with an earlier measure suggesting that any tax advisors or accountants caught aiding tax evaders should be fined for as much as 100 percent of the taxes dodged under their scheme.
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