Disclosure of offshore accounts - deadline approaches

For taxpayers with undeclared offshore income and gains, today is the last day to take advantage of the taxman's generous offer to come clean.

To recap, following a court case, the taxman obtained from certain banks information relating to offshore account holders. He then announced that offshore account holders with undeclared taxable income and gains had until 22 June (ie today) to come forward and notify him of their intention to disclose. Disclosures then had to be made by 26 November 2007, and all the back tax, plus interest, paid by that date. The taxman kindly reduced from 100 per cent (of the unpaid tax) to 10 per cent, the penalty that would normally apply in such cases.

So today, 22 June, is the deadline for notifying intention to disclose. Anybody with undeclared taxable income in an offshore account who does not, by the end of today, notify intention to disclose, is in danger of criminal prosecution. Thanks to the court, the taxman has information on these offshore account holders, and will waste no time going through that information in order to identify anyone who has not paid his tax and who has also failed to take advantage of this 'amnesty'.

UPDATE. 23 June 2007. The Telegraph is reporting that of the 400,000 people identified by the taxman (based on the information obtained through the court), as having not paid the correct tax, only 56,000 had, by the end of yesterday, notified their intention to disclose. Somehow I don't think the taxman will be very amused.