The ‘Failure to Correct’ (FTC) regime started on 30 September 2018, with punitive penalties, including:
- A tax geared penalty (100% to 200%) of the tax not corrected
- A potential asset based penalty of up to 10% of the value of the relevant asset where the tax at stake is over £25,000 in any tax year
- Potential “naming and shaming”
- A potential additional penalty of 50% of the amount of the standard penalty, if HMRC could show that assets or funds had been moved to attempt to avoid the Requirement to Correct
Anyone who failed to correct their position despite knowing that they should do so may also face:
- A potential asset based penalty of up to 10% of the value of the relevant asset where the tax at stake is over £25,000 in any tax year; and
- Potential “naming and shaming”
The failure to correct legislation was accompanied by the Common Reporting Standard. Information has passed from different jurisdictions, including the favourite low tax ones, to HMRC.
[cs_gb id=1263]
