CH124100 | Offshore matters: penalties for enablers of offshore tax evasion or non-compliance: the aim of the penalty

On 1 January 2017 new penalties were introduced for individuals or corporates who deliberately help others evade tax in relation to offshore matters. These penalties are up to 100% of the tax evaded by the person they helped or £3000, whichever is the greater.

HMRC’s strategy to tackle offshore tax evasion is set out in HMRC’s No Safe Havens strategy document. This states that HMRC will take tough action against evaders and those who help others to evade tax.

In the March 2015 budget, the Government announced its intention to legislate for tougher financial penalties for offshore evaders, including the introduction of penalties for people who have enabled offshore tax evasion or non-compliance by another person.

The aim of this measure is to create a strong deterrent to those who encourage, assist or otherwise facilitate another person’s use of offshore jurisdictions with the objective of evading their UK tax liability.

The legislation can be found in Finance Act 2016 - Schedule 20 (FA16/Sch20), and you should consult the legislation when reading this guidance.