The release of the Pandora Papers, a collection of 11.9 million leaked documents from offshore financial service providers, has sent shockwaves through the finance world ...
They contain over 750,000 names of individuals and companies associated with more than 200 countries and territories. As a result, HM Revenue and Customs (HMRC) has been diligently examining the details pertaining to UK taxpayers.
In a bold move, HMRC has taken the initiative to reach out to approximately 600 individuals identified in the Pandora Papers However, it is anticipated that this initial wave of notifications is just the tip of the iceberg, as more individuals are likely to be contacted due to the vast amount of financial data brought to light by these revelations.
The letter sent by HMRC to the taxpayers urges them to review their disclosure of offshore income or gains, emphasizing that penalties for under-declaration could reach up to 200% of the unpaid tax. Furthermore, individuals who provide dishonest disclosures may face criminal prosecution so recipients of these letters need to seek professional tax advice and then respond within 30 days from the date of the letter.
It is worth noting that taxpayers who have authorised tax agents will have their agents receive a copy of the letter instead. While it states that no action is required if taxpayers believe their tax affairs are accurate, it is strongly advised to verify with HMRC that the correct taxpayer has been identified to avoid unnecessary investigations into mistaken identities.
Taxpayers and their agents can contact HMRC through the provided telephone number, where call handlers will guide them in understanding the implications of the letter, preventing any confusion regarding unreported transactions or omitted bank accounts on their tax returns.
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