Offshore details now being automatically exchanged

Monday 10 October 2016

A deal between Jersey and the UK means from now on details of thousands of offshore accounts are automatically being passed on to HMRC.

And from next year Jersey’s extending the scheme to include other jurisdictions that have signed up to the CRS – Common Reporting Standard.

CEO of Jersey Finance, Geoff Cook, said: “The information which has been exchanged is part of an ongoing process which is increasing tax transparency around the world, and in which Jersey has been involved for several years.”

The information includes the UK resident’s name, registered address, date of birth and National Insurance number, and the account number and Jersey financial institution where their account is held.

For each year, account activity will be exchanged including the balance or value, total gross income paid or credited, and value of certain insurance contracts. From 2017, for custodial accounts the information exchanged will also include details of gross proceeds paid to the account.

As Mr Cook notes: “Until now information has been supplied to all tax authorities when they have requested it, but it will now be automatically exchanged, increasing the transparency of the world tax system. We are a tax-neutral jurisdiction, committed to ensuring that the right tax is paid in jurisdictions in which it is owed, and automatic exchange will help that to take place.”

The introduction of the automatic exchange of information deal between UK Customs and the Crown Dependencies and Overseas Territories has led some commentators in the national press to speculate it could bring in more than £270m and led to a rash of criminal prosecutions for tax evasion.

The Revenue says it has raised £2.4bn from offshore tax evasion initiatives since 2010 and is conducting criminal investigations against more than 90 individuals for offshore offences.