'Pay what you owe or face prosecution' is the message today from the Government to people with undeclared offshore tax liabilities.

A new criminal offence of failing to declare taxable offshore income and gains has been set out in an HM Revenue and Customs consultation paper launched this morning.

David Gauke, Financial Secretary to the Treasury, said: "The minority who use offshore secrecy to evade UK tax are making a big mistake. There is nothing wrong with holding assets offshore but investors must pay the tax they owe here.
"Thanks to this government's leadership, countries across the world have agreed to share information on offshore accounts.
"Over 56,000 people have already told HMRC about what they owe offshore and HMRC has offered opportunities to clear things up as quickly and easily as possible. Those that don't come forward must face tough consequences, including a criminal conviction."

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The majority of offshore cases will continue to be dealt with through a civil approach. A further consultation paper sets out the government's plans to introduce tougher civil sanctions for offshore evaders, including those who move their taxable assets between offshore banks in different countries in an attempt to hide their wealth and evade tax.
The consultation examines the situation where an individual moves their assets from one offshore centre which has tightened its tax-information-sharing laws to another which hasn't.
The 20-year rule limiting how far back HMRC can look at a taxpayer's affairs could also be suspended.
The consultation seeks views on the design of the new offence and on what the appropriate safeguards should be.