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Is FATCA and Exchange of Information Agreements About to Bite?

Fiduciary Wealth Team

The UK government has set out plans to make failure to declare offshore assets and tax arrangements a criminal offence.

In a consultation paper issued last August the UK Government proposed to make it a “strict liability offence” to conceal funds offshore for illegitimate tax purposes. Under these new proposals this will become a criminal offence and furthermore the UK intends to toughen the existing penalties for tax evasion.

The UK already has numerous agreements in place with different jurisdictions based on a common reporting standard. You will not be surprised to know that the Channel Islands, Isle of Man, UK overseas territories, Gibraltar as well as Spain and Portugal are on the list. However in order to capture those outside of these arrangements HMRC says it will prioritise for criminal investigation anyone that moves money to a jurisdiction that is not part of the common reporting standard.

Apparently over 56,000 people have already told HMRC about offshore assets and the hunt is on for more. In some jurisdictions such as Isle of Man HMRC has “invited” those to voluntarily disclose their arrangements within a limited period of time.

In 2016 Exchange of Information wlll become standard and information will be freely passed between jurisdictions even if it isn’t now. Unfortunately the large amount of information made available and exchanged between authorities means that even those of modest wealth can easily be caught out in the drive for total compliance with these new rules.

Why are we telling you this?  We want to make sure that if you have undisclosed assets held in your personal name or in a trust or a company that you take appropriate action to ensure that moving forward these are totally transparent. There are plenty of legitimate tax efficient strategies which might allow you to mitigate both income tax and death taxes here in Spain.

Why risk public intrusion into your personal finances when you can safely hold your investments without running the risk of an investigation by the authorities?

Why take a chance by not disclosing on Modelo 720? The penalties are severe and the chance of the Spanish authorities being able to trace your offshore funds wherever they are held and under whatever structure is getting easier and easier. With the introduction of FATCA is it pretty much game, set and match for Hacienda, HMRC and any other tax authority.

Don’t let a tax investigation spoil the dream and ruin your new life overseas. We would like to start by offering you a FREE private consultation (worth £500) to assess your current financial position and explain how our Spanish tax reduction strategies can help.  If you already have a clear understanding of your current situation we can offer a FREE tax planning assessment instead (worth £1,000). Just think you will be getting FREE advice on tax planning for Spanish residents as well as retirement, savings and wealth tax mitigation strategies.

Call tel 951319727 for a meeting with a cross border expert or email enquiries@fiduciarywealth.eu.