The requirement to correct consultation

HMRC is consulting on new legislation for Finance Bill 2017 which imposes a statutory ‘requirement to correct’ (RTC) tax returns (see www.bit.ly/2bzgHgc). The proposal is that taxpayers with offshore financial interests will fully review their UK tax affairs to ensure their returns are complete and correct. The RTC will mean that any taxpayers who discover they need to file returns or amend existing returns have a formal window until 30 September 2018 to submit a disclosure. Additional sanctions are proposed for those who fail to make disclosures under the RTC, including higher penalties of up to 300% of the tax plus a penalty of 10% of the asset’s value and publishing of their details.