http://www.propertyshowrooms.com/ News and articles on Tax, worldwide property and real estate investment in Bulgaria en-GB http://www.propertyshowrooms.com/bulgaria/property/news/tax-conjectures_11339.html http://www.propertyshowrooms.com/bulgaria/property/news/tax-conjectures_11339.html <p>Pressure has been rising lately in Bulgaria on the issue of reducing the level of the value added tax (VAT)...</p> Wed, 16 Jul 2008 00:00:00 GMT http://www.propertyshowrooms.com/bulgaria/property/news/article-751.html http://www.propertyshowrooms.com/bulgaria/property/news/article-751.html In an earlier article we have outlined the latest news regarding the Inland Revenue’s new directives to enforce heavy penalties for non-payment of tax on revenues we achieve from overseas properties. HM Revenue & Customs is targeting UK tax payers with offshore bank accounts as they are convinced that these people are a significant source of lost taxes. HM Revenue & Customs has recently won a court case against its first of many targeted banks, Barclays Bank, obliging them to disclose the personal and financial details of their customers who hold offshore bank accounts. HMRC knows of 9,300 Barclays customers in Britain who have accounts outside the country. It is estimated that just one in five of those filing UK tax returns declare this while only one in five account holders declare any foreign income! In this way HM Customs & Excuse aims to recover about £2 billion this year on lost taxes from UK investors with overseas property and offshore accounts. It is particularly interested in the thousands of owners of international property who make use of offshore bank accounts to manage their financial affairs. The 257,000 households who have second homes abroad will be in line for full investigation. What you should do The best advice is to take professional advice now to put your affairs in order with the taxman in readiness for an investigation. Unless proved to the contrary, HM Revenue & Customs will simply assume the offshore account has been funded from untaxed funds. You will need to be able to supply documentary evidence to the show them that this is not the case. Similarly, it will assume the property is being rented out and undeclared income is being received from it and banked somewhere. Again, you need to prove the contrary. Get your records of income and expenditure and bank statements ready to have your affairs in order. You will need to bring absolutely everything above board and clear and thus avoid hefty interest charges and penalties. Thu, 8 Jun 2006 00:00:00 GMT