UK residents are being warned they could be caught up - rightly or wrongly - in a tax avoidance net cast by Portugese authorities, who may be working with their UK colleagues.
A series of raids against major Portugese banks suspected of aiding money laundering and tax evasion has zeroed in on millions of euros suspected of being deposited offshore, much of it passing through the UK.
UK tax authorities are helping the investigation, IFA firm Chiltern says, which may result in HMRC obtaining bank details regarding untaxed interest or remitted payments, access to details on undeclared income and tax avoidance or evation, or merely names of people or companies that have used Portugese banks to deposit funds.
“Of course, it may also lead to investigations into individuals where there is no case to answer.” Chiltern adds.
Significant stress may be involved if subject to an investigation by HMRC, even for those with legitimate avoidance schemes in place. Schemes should be reviewed and voluntary disclosures made of “any tax irregularities that exist” as this can result in large reductions in penalties.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Jonathan Boyd on 020 7484 9769 or email [email protected].IFAonline
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