The HM Revenue & Customs of the United Kingdom’s Requirement to Correct (RTC) deadline is approaching on September 30, 2018.
The new legal requirement was enacted in the Finance (No. 2) Act 2017, and obligates anyone with undeclared UK tax liabilities involving offshore income or assets to disclose the relevant information about this non-compliance to HMRC by the deadline.
The Sept. 30 date is also the date by which more than 100 countries are scheduled to exchange data on financial accounts under the Common Reporting Standard.
The rule relates to liabilities for the UK Income Tax, Capital Gains Tax, and Inheritance Tax. It only applies to tax non-compliance committed before April 6, 2017.
According to the HMRC’s guidance note: “Failure to disclose the relevant information to HMRC by September 30, 2018, will result in liability for a new penalty which is likely to be much higher than the existing penalties. In all cases where a penalty applies, there will be a standard penalty equivalent to 200% of the tax liability which should have been disclosed to HMRC under the RTC but was not. This penalty can be reduced depending on the level of cooperation and timeliness of the disclosure.”
Joeseph Erwin is an attorney based in Dallas, Texas. He may be reached at Joe@ErwinTaxLaw.com, or: Law Office of Joseph M. Erwin, 100 Crescent Court, Suite 700 Dallas, Texas 75201-2112 USA | Tel.214.969.6890 | Fax.214.969.5707 | www.erwintaxlaw.com | www.itsgnetwork.com.