New Offshore disclosure initiative by UK Tax Authorities

Monday 14 September 2009

In 2007, the Data Protection Commissioner received numerous complaints from local residents about the disclosure of their bank account details to Her Majesty’s Revenue and Customs (HMRC).

The outcome of those complaints was an undertaking by HMRC that any information relating to people without a UK tax liability would be destroyed.

He has now been advised by HMRC that a new campaign has been launched and that around 300 financial institutions have been ordered to disclose transaction details relating to any offshore accounts where the holder has a UK address associated with their account.

It is likely that this disclosure initiative will once again affect some local residents who may have no liability for tax in the UK, but have some UK links, such as a temporary address in the UK or some other historical or family connection.

The disclosure orders have been served on UK institutions, so should only affect those residents whose bank does some processing activities in the UK.

Anyone who is at all concerned as to whether their account details may be disclosed to HMRC is recommended to contact their local bank, who should be able to give them further information.

HMRC has given an undertaking that any transaction data relating to non-UK taxpayers will be destroyed, but the Information Commissioner has advised the Guernsey Commissioner that he will be scrutinising the operation of the scheme to ensure that it remains compliant with the Data Protection Act.

Peter Harris, Guernsey’s Commissioner wrote to HMRC about this matter and had been advised as follows:

“HMRC will be working with the financial institutions subject to the notices over the next few months, to ensure that the information disclosed is only that required under the notices. We have already issued them an information pack and will be holding workshops in September to help further.”

HMRC also assured the Commissioner that HMRC will not cold call any Islanders about their tax affairs and he emphasises that if anyone receives cold calls claiming to be about income tax they should be ignored.

Anyone with any other concerns can contact the Data Protection Commissioner by telephone on 742074, by fax on 742077 or by email at dataprotection@gov.gg