Taxman pursues offshore bank account holders

By Jennifer Hill

LONDON, March 17 (Reuters) - The taxman is chasing thousands of offshore bank account holders who have failed to come clean about their assets in an amnesty.

HM Revenue & Customs (HMRC) is writing to around 5,000 people whom it believes to be offshore account holders, but have yet to declare any savings and investment income.

They will have one last chance to come clean -- or face stringent penalties.

It is one of a string of moves to clamp down on unpaid tax. HMRC is also pursuing those earning income from buy-to-let property investments, both in the UK and overseas.

Accountant PKF said the measures turn one of the central tenets of the English legal system on its head -- by presuming that taxpayers are guilty and demanding proof of innocence.

Tax investigations partner John Cassidy said: "Legally, to issue an assessment for unpaid tax, HMRC must have made a 'discovery' or, in other words, have actual knowledge that further tax is due -- not just that it might be due.

"Yet, the threat is that such assessments will definitely be issued unless informal, voluntary answers are given to the questions raised."

Although taxpayers are under no legal obligation to respond, those who fail to, ultimately face an investigation into their tax affairs and hefty penalties.