When the new Right to Correct (RTC) rules come into force, offenders can expect to be penalised a minimum of 100% of the tax owed.
A maximum penalty of 200% tax owed is available for the worst offenders, as well as a 10% levy on the value of the assets.
However, those making corrections before the deadline, which coincides with the introduction of Common Reporting Standard, will face lighter penalties under the current, more lenient system.
Offenders can discount their way down to the minimum depending on the seriousness of the failure, the quality of the disclosure and the level of cooperation.
In addition, if offenders knew they were non-compliant and didn’t correct tax owed of more than £25,000 ($32,990 €27,970), HMRC may publish their details.
Only non-compliance before 6 April 2017 falls within RTC.
Corrections can be made through agreed channels, including HMRC’s digital disclosure facility or to an officer during the course of an enquiry.