Crackdown on UK businesses using tax havens gathers pace

HMRC is tracking 512 UK businesses suspected of using tax havens up 84% from the 277 businesses at the same time last year according to information obtained by Pinsent Masons in response to a freedom of information request. 

The tax authority is strongly focused on British businesses based in 12 major tax havens including the Cayman Islands Bahamas and British Virgin Islands.

HMRC now receives large amounts of data on UK businesses from the governments of the 12 major tax havens making it more difficult for UK businesses to obscure their activities from the UK tax authority.

Reports to HMRC also include businesses that are using tax havens primarily to hold and exploit their intellectual property which puts them at a high risk of not meeting the substantial activities requirements. HMRC has made clear that when abusive practices are used ...