HMRC is keen to expand its powers to tackle debt, say Emily Springford and Vanessa Whitman
The British Bankers’ Association has sent messages to British banks and some other financial and credit organisations alerting them that HM Revenue & Customs (HMRC) is running a large-scale investigation to reclaim unpaid tax on interest earned in offshore accounts. Following negotiations with some major banks in 2006, HMRC will probably embark on a similar process with other banks and financial institutions to maximise its recovery of unpaid tax on interest earned in offshore accounts. HMRC is likely to put banks under pressure to release information about customers’ accounts, possibly including the accounts of deceased customers, as well as dormant and closed accounts.
INVESTIGATIONS
The recent investigations have focused primarily on taxpayers who have a UK address and an offshore account, or credit cards linked to or funded by offshore accounts. The details sought by HMRC have been wide and include personal, business and transactional data. Moreover, HMRC has served notices under the Taxes Management Act 1970 (TMA 1970), s 20(8A), which is used
