Reuters reports - UK’s tax authorities are going after thousands of offshore bank account holders who have yet to come forward and report offshore holdings under a UK amnesty.

HM Revenue & Customs (HMRC) is contacting approximately 5,000 people whom it believes have undeclared assets and investment income in offshore accounts.  HMRC is saying that they have one last chance to come clean or face stringent penalties.

“Accountant PKF said the measures turn one of the central tenets of the English legal system on its head — by presuming that taxpayers are guilty and demanding proof of innocence.”

“Tax investigations partner John Cassidy said: “Legally, to issue an assessment for unpaid tax, HMRC must have made a ‘discovery’ or, in other words, have actual knowledge that further tax is due — not just that it might be due.”

While taxpayers aren’t under legal obligation to respond to inquiries, those who fail to will face an investigation and potentially large financial penalties.

The chief of taxation at the Association of Chartered Certified Accountants, Chas Roy-Chowdhury, said:  ‘They (HMRC) are depending very largely on the willingness of offshore account holders to inform the taxman of their financial details, but if this is not done proactively, the taxman will find other ways and means, such as targeting banks and finance providers.

‘This is an opportunity to put things right with the taxman, but they also warn that if a disclosure is made which shows interest and income has been received, then interest is payable and in some cases the taxman will seek ‘penalties’.

While the HMRC has said they will take cooperation into account, penalties will now be no less than 30 percent of the sums due.

“‘Tax evaders had their chance to come clean and pay reduced penalties of 10 percent last year,’ said Gary Ashford, a tax investigations director at accountant and business adviser Grant Thornton.”

“‘Now, HMRC is playing hardball and will be taking no prisoners.’”