Under proposals published on Monday, anyone setting up an offshore tax structure which “bears the hallmarks of enabling tax evasion” will have to notify HMRC.
The names of those using offshore schemes would also need to be provided to HMRC.
Financial secretary to the Treasury, Jane Ellison said “Many people have legitimate reasons to use offshore structures but can unwittingly get caught up in those could land them in trouble. Asking people to report complex structures on their tax returns may make them stop to examine them more closely.”
Those who fail to comply with the rules on notifying HMRC could face civil sanctions and other potential penalties such as public naming. In addition, those who fail to correct past tax evasion by September 2018, would be hit with tough new penalties and potentially criminal charges.
These latest proposals have been introduced in an attempt to clamp down on offshore tax evasion.