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UK move on tax evasion 'a deterrent'

 

An Island tax accountant says a UK clampdown on those who place their money offshore to evade tax, is unlikely to trace many culprits in the Isle of Man.

Chancellor George Osborne says in future those who try to avoid  tax by hiding money offshore will face tougher penalties.

At present officials must prove a person intended to evade tax due on offshore accounts. 

Under new rules, those with undeclared income may face charges, even if there was no intention to avoid tax. 

Phil Dearden is tax director at Equiom Solutions.

He says the Manx government has signed-up to a series of international agreements, to deter evasion. 

But he says the new standards are something clients of the financial services industry must be aware of:

 

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