15 June 2023
HM Revenue and Customs (HMRC) has stated it will be contacting UK residents named in the ‘pandora papers’ and give them the opportunity to “correct their tax affairs”.
The pandora papers were leaked files from 14 financial services companies specialising in lor, or no tax, jurisdictions.
According to a press statement released on 12 June 2023, letters, which have already started going out, will warn residents named to report all income or gains that tax is owed on in the UK. If this is not done, they could face penalties of up to 200% of the tax due or prosecution.
Recipients can make a disclosure through the contractual disclosure facility (CDF), where HMRC will then agree not to criminally investigate so long as the customer agrees to open and honest disclosure of the tax fraud committed. The worldwide disclosure facility (WDF) is also available for offshore issues, but does not offer any protection from prosecution.
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