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My money lies over the ocean...

"Moving your money offshore" has long been thought of as a way of cutting your tax bills. Unfortunately, there are so many  rules to stop tax avoidance that it often doesn't reduce your legal tax liability - the Revenue may lose sight of the money for the meantime, but if they find it again and you haven't been declaring it, there is trouble.

The Revenue recently announced a project to recover £1.6 billion in tax they reckon they are owed in relation to 30,000 offshore companies with UK-resident shareholders. How they calculate these figures is mysterious, but it's clear that the Revenue reckon that people have not done enough to make their offshore planning work properly, and they are coming to find those people. They are tracking offshore companies with a known British connection, and enlisting the co-operation of tax haven authorities who are being forced to be more open in the wake of 9/11.

If you have offshore shareholdings, you need to be confident that everything that should be declared is being declared. If you don't, and suspect that other people are dodging their fair share of tax, you may be happy to know that the Revenue are taking action.