.png)
.png)
HMRC's offshore amnesty raised £400m — significantly lower than the anticipated target.
Nevertheless, the Offshore Disclosure Facility has been hailed as a success.
HMRC said they were 'very pleased' with the results of campaign, which attracted 450,000 disclosures and had been expected to raise almost £2 billion.
The Revenue added that it was 'a low cost/high yield project… This is money that would not be properly taxed under the law without the ODF'.
Tax investigation John Cassidy was in agreement with HMRC's view.
He remarked: 'The amount retrieved is low compared to the £1.75 billion target, but it is a major success given that £400 million has been raised without [the Revenue] doing anything'.
HMRC said that the amnesty provided 'important evidence on which to base any future policy-making.
'The disclosure facility is a key element of [our] strategy to ensure putting monies offshore does not provide an unfair advantage over those who pay their fair share.
'It is still in the interest of those who haven't so far come forward to do so, to reduce any potential penalties.'
John Cassidy, a partner with PKF, suggested that the Revenue look carefully at how the ODF worked and then learn from it to build towards a second, more successful amnesty — which he believes would be a wise move.
Rumours of another ODF have been circulating for some time, although HMRC has so far refused to confirm details, saying only that they are considering the move.
However, the Revenue has stated that it 'will be working with the next group of banks to ensure that their customers receive similar treatment to those from the first in any second offshore disclosure project'
Earlier this week, the banking industry called for a compromise on attempts to track down investors who owe taxes on overseas bank accounts.
Mr Cassidy recommended that, in order to ensure a successful second amnesty should it go ahead, HMRC 'incentivise people to come forward'.
One method, he suggested, would be reducing the 20-years' of bank statements and other documentation currently demanded by the Revenue.
John said: 'There has got to be a reduction in the number of years. What is lost in potential tax recuperations will be gained from more people coming forward.'
