HUNDREDS of millions of pounds in unpaid back taxes will be recouped next year under a new agreement with the Isle of Man, the Treasury announced yesterday.
A disclosure facility aims to claim taxes on undeclared incomes back to 1999, while an automatic tax information exchange agreement should prevent similar tax evasion occurring in the future.
Individuals will have from April until 2016 to declare the tax they owe and pay a discounted penalty.
“The government is committed to tackling tax evasion and this agreement will greatly enhance HM Revenue and Customs’ ability to clamp down on those who try to hide their money offshore,” said chancellor George Osborne yesterday.
“I welcome the progress made with the Isle of Man and look forward to working on this new standard in the automatic exchange of tax information.”
The measures follow similar agreements with Switzerland and the US, while talks are ongoing about a deal with Jersey and Guernsey.
The government has also pledged to focus on international tax transparency during the UK’s presidency of the G8 this year.