Dealing With HMRC Investigations Into Offshore Accounts - February 2012

In May 2006 H.M. Revenue & Customs ("HMRC") won a landmark victory with significant ramifications. The Special Commissioners ruled in favour of HMRC against Barclays Bank plc, which forced the bank to release to HMRC certain personal details of its clients who hold offshore accounts so HMRC could investigate any irregularities relating to unpaid tax on interest earned. It was assumed that this was merely the 'tip of the iceberg' and that HMRC were after a far bigger prize beyond unpaid interest earned in offshore accounts.

Then, as from 2009, the Finance Act 2008 authorised HMRC to issue information notices requiring UK financial institutions to provide HMRC with certain information and documentation, within their power or possession, relating to account holders who have an address within the United Kingdom and who hold a non-United Kingdom bank account. A non-United Kingdom bank account is an account where the money or assets relevant to the account are held outside