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Warning for region’s savers amid Swiss banking investigation

PEOPLE in the North East with undeclared income from overseas bank accounts could face being investigated on suspicion of fraud on the back of a new government drive to get tough on tax evasion.

That is according to Newcastle-based accountancy group RMT, which has urged anyone in this position to seek expert advice or risk the wrath of HM Revenue and Customs (HMRC) as it steps up its efforts to tackle undeclared offshore earnings.

The Government this week started a major investigation into thousands of accounts held with the Swiss arm of HSBC, with hundreds of British people suspected of hiding money in Switzerland.

The investigation comes after a former HSBC employee reportedly stole data of around 24,000 Swiss accounts, with the details eventually falling into the hands of the tax authorities.

British taxpayers who have fallen under the scrutiny of the HMRC could receive a Code of Practice 9 notice, described by a Reuters source as “one of the most serious letters you could possibly get.”

However, according to RMT, HMRC’s close scrutiny of the Swiss HSBC accounts will be followed by an increased focus on any offshore accounts that are deemed suspicious.

John Richards, managing partner at RMT, said: “The latest publicity concerns customers of HSBC who hold accounts in Switzerland, but the same approach is being taken with anyone who HMRC believe have not declared income which is held in an overseas bank.

“HMRC has now started attacking the most serious offenders by investigating them under Code of Practice 9. If anyone receives this type of approach they should realise they are under suspicion of committing a serious fraud. The HMRC teams carrying out this work are specialists and can take a robust approach. The possibility of a criminal prosecution will quite often be discussed.

Mr Richards believes that anyone who has any doubts over the tax status of any overseas accounts should call in the experts to clarify the situation.

He said: “Those in this position should take professional advice, certainly before agreeing to any meetings with the investigators.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .