HMRC missives about offshore accounts can be intimidating

Letters from HMRC to taxpayers in connection with the exchange of information under the Common Reporting Standard (CRS) are often inaccurate and can be intimidating according to Blick Rothenberg.  

Fiona Fernie a tax dispute resolution partner at the firm said: ‘We are seeing increasing numbers of letters to taxpayers from HMRC suggesting they have received information indicating that they had offshore income or gains in an earlier tax year. But many of the letters are inaccurate do not reflect the person’s tax return and can be intimidating.’

Further it seems the reports HMRC is receiving are for a calendar year – so traverse two tax years – and that they have not cross-referenced to the tax return before posting the letters which appear to be automatically generated.

She recommended that taxpayers and their agents should request information from offshore fiduciaries about what they will be reporting...