The tax evaders in the Isle of Man, Jersey or Guernsey are being warned by HM Revenue & Customs to "come clean" before it clamps down on them.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
HMRC’s has warned with signed agreements with all three jurisdictions which are aimed at increasing tax information sharing between the British Crown Dependencies and the UK.
The agreements were based, in part, on the principles of the Foreign Account Tax Compliant Act (FATCA), under which the US government is asking governments and businesses around the world to comply with strict tax information sharing agreements in order to cut down on tax evasion by US citizens.
The Isle of Man was the first to sign an agreement with the UK, followed by Guernsey and Jersey which both signed in March. All three jurisdictions announced plans to enter into the agreement.
As a forerunner to implementation of the agreements, HMRC has opened a new disclosure facility for use exclusively by those with assets in any of the three jurisdictions.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUnder the terms of the facility, those who choose to disclose will face more lenient penalties than those who are ultimately found out after the tax sharing agreements come into place. Those who are caught could face criminal charges, penalties of between 10% and 40% on the assets hidden and being publically "named and shamed".
Exchequer secretary David Gauke said: "The net is closing in on those seeking to hide their money offshore to evade their tax responsibilities."
