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Newsletter | Articles Amnesty for Offshore Tax Evaders The UK Government is set to announce an amnesty scheme for tax evaders who have invested their money in offshore bank accounts. The news is expected imminently. A number of banks and accountancy firms have been contacted with details of the new scheme by Her Majesty’s Revenue and Customs (HMRC), which has also stepped up its efforts to encourage high street banks to hand over customers’ offshore account details. The scheme, which needs government approval, could be in force by the end of this month. HMRC looks set to offer a partial amnesty for minor offenders that will cap fines and back taxes at between 10 per cent and 25 per cent of their maximum level. Fines for non-payment of taxes can currently be set at 100 per cent of the unpaid amount and tax evaders will also be liable for the back tax, plus interest. A government source said: “There is a discussion going on with the banks and accountants as to what sort of process we might use to encourage people to come forward. We are working in the background on ways of encouraging them to do just that.” Although it is legal to hold money in offshore bank accounts, it is illegal to conceal interest earned on it. It is believed that more than £180bn is held in offshore accounts by UK nationals, with the Channel Islands – particularly Jersey – a favourite destination for British cash. The campaign, which is being run by the Offshore Fraud Project Group, had a massive boost in May 2006 when HMRC won a landmark legal victory against Barclays Bank. The Special Commissioner’s ruling gave HMRC power to force Barclays to hand over details of thousands of customers’ offshore bank accounts. HMRC estimated access to the records would allow it recover around £1.5bn in unpaid tax from Barclays customers. It is understood HMRC is close to winning further legal cases which will force other high street banks to hand over customer information.