The U.K. government reported in its press release that it has launched an advertising campaign hunting down tax evaders who have been holding money in offshore accounts. The information about the tax campaign will be published in all leading daily and weekly print media. So, owners of accounts in tax havens must declare their offshore assets urgently, otherwise they will face penalties. Tax evaders could face fines of 200% of the tax owed and the possibility of criminal prosecution and imprisonment. The press release mentioned that the U.K. had achieved "a real breakthrough" on tax with its dependencies and overseas countries agreeing to exchange information. Some of them, for example, the British Virgin Islands are the world-famous offshore hub. Meanwhile, London has entered into agreement on the tax information swap with 42 countries.
The advertising campaign targeting tax evaders kicked off after the conference of G20 finance ministers and central banks’ governors in Sydney on February 22-23. Its wrap-up confirms the G20 commitment to develop transparent tax provisions and to prevent “profit shifting” around the world.
Recently, developed countries tightened their fight against tax evaders among individuals and companies using gaps in laws to minimize tax deductions to a budget. In particular, in spring 2013 a scandal broke out because Google was paying little tax in the U.K despite having big U.K. operations. The American corporation was charged of applying Ireland’s legislation to lessen tax. However, Google management considered their tax actions legal. Apart from the U.K., Liechtenstein, a huge offshore hub in Europe, has also set a course for more transparent finance system.