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Award winning software helps HMRC connect data in its hunt for tax evasion

The software, called Connect, has been developed to scour vast databanks of personal and commercial information, seeking to unearth links between individual taxpayers and businesses, income, assets and transactions. It then matches its findings against the information the taxpayer has provided through their return. Discrepancies are flagged and could prompt a tax investigation. The searches take mere seconds and are undertaken repeatedly to capture new information. 

From next year Connect’s powers will extend further still. September 2016 is when HMRC starts having access to files held by banks and other financial firms based in British overseas territories, such as the Channel Islands; and from 2017 Connect goes truly global with access to data in a further 60 countries. 

One of Connect’s biggest jobs is to hunt for income disparities. It will process information about your bank account balances and income, and match this with other information – mainly your tax return and, for example, and your PAYE data submitted by your employer. The object is to spot undeclared, taxable savings income. From 2016 financial institutions in British Overseas Territories will share data with HMRC. From 2017, this extends to 60 other OECD countries and by 2020 virtually all countries will have some form of data-sharing agreement in place. 

In theory the data should always flow to the country where the individual is resident for tax purposes. So HMRC would share data with another country only if the individual was due to pay tax there. In turn, HMRC would want bank account data from say, Spain, where it related to taxpaying residents in the UK. 

If you have any doubts about your financial affairs we are here to give you free, impartial, independent advice. If you have any questions or need any clarification regarding the above you can contact me on info@blacktowerfm.com

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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French PM makes expat tax regime commitment

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The French Prime Minister Manuel Valls said that the favourable tax regime for expats in France would be extended from the first five to the first eight years of residence; the move goes some way to redress perceptions of an overly regulated and unfairly taxed financial sector in France.

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Do you want HUGE tax efficiency for your savings in France?

Calculator and coins in a viceWhen I first meet a client it takes time for us to get to know each other, and every single person is different with different needs. However, at the root of those needs is usually the desire to find out how best to keep all those hard earned savings, investments and pensions as tax efficient as possible.

Once you have left the UK and become resident in France, the ISAs and other tax efficient savings you may hold in the UK are no longer tax-free and you need to give careful consideration about how you deal with this.  With the new Common Reporting Standards that were introduced recently we can no longer bury our heads in the sand and think that the French taxman will not know about the assets you have left in the UK and will not look to tax you accordingly.

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