A member of the UK200Group of independent chartered accountancy and law firms has today commented on the recently leaked ‘Panama Papers’.

 

It was revealed today that tax investigators from HM Revenue & Customs have written to media organisations requesting copies of the 11.5 million offshore tax files leaked from law firm Mossack Fonseca.

 

This move is similar to HMRC’s approach to the leaked details of 130,000 holders of secret accounts with HSBC’s Swiss private bank in 2010, in which it appointed a team of over 300 tax officials to investigate.

 

Jonathan Russell, Partner at UK200Group member firm ReesRussell, said:

 

“The leaked information regarding monies 'hidden' in Panama highlights two serious facts. Firstly there is an attitude by many of the wealthy people and corporations that hiding money and financial dealings from authorities is not only acceptable, but something that should be done.

 

“Secondly there is an attitude that it is preferable to pay what can be huge sums to 'professionals' who will facilitate such actions in order to avoid paying taxes or any other liabilities that might be triggered by disclosure.

 

“So long as these attitudes remain and professionals and the banking system are happy to earn fees by facilitating such processes then it is bound to continue. The ever tightening regulations just mean that these options are available to fewer people as the price of provision goes up.”

 

Doug Sinclair, Tax Investigations Partner at UK200Group member firm BKL.

 

Meanwhile BKL’s Tax Investigations Partner Doug Sinclair has said that the leak of 11.5 million documents relating to offshore structures is highly significant in HMRC’s fight against tax evaders.

 

“HMRC’s request to secure the data for checking against their Connect system comes at a crucial time. Currently there are no HMRC offshore tax disclosure facilities which would enable individuals to come forward and disclose tax irregularities,” said Doug.

 

Although he explained that if someone has deliberately evaded tax, then they could take advantage of HMRC’s Code of Practice 9 procedures. However, he added that specialist tax advice should be sought in these circumstances.

 

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Established in 1986, UK200Group is the leading mutual professional association in the UK with some 150 offices of quality-assured member accountancy and law firms throughout the UK totalling more than 500 partners who act for business clients and global links in nearly 70 countries. Our member’s contributions reflect the views, questions and answers arising from their 150,000+ SME clients. UK200Group provide services and products that are designed to enhance the business performance of its members. Telephone: 01252 401050 or: 01252 350733, email: admin@uk200group.co.uk or visit: www.uk200group.co.uk.

Disclaimer:

UK200Group is an association of separate and independently owned and managed accountancy and law firms. UK200Group does not provide client services and it does not accept responsibility or liability for the acts or omissions of its members. Likewise, the members of UK200Group are separate and independent legal entities, and as such each has no responsibility or liability for the acts or omissions of other members.

 

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