Britons hiding money in the Isle of Man have three years to own up or face heavy fines under the government’s latest arrangement to counter offshore tax evasion.
The agreement, announced yesterday, includes a disclosure facility to allow investors with accounts in the Isle of Man to come forward and settle their past affairs before information on their accounts is automatically shared between the two governments.
The disclosure facility will operate from 6 April 2013 until September 2016. It will not be open to individuals already under investigation but will cover liabilities dating back to April 1999.
There will be a penalty charge of 10% of unpaid tax up to 2009 and 20% for later years. Those who do not come forward will face “significantly higher” penalties and may face prosecution.