Barclays Ruling Gives HMRC Access To Offshore Account Information

by Jason Gorringe, for LawAndTax-News.com, London

04 May 2006

In a ruling handed down by Special Commissioner John Avery Jones on Wednesday, Barclays Bank was ordered to furnish HM Revenue and Customs with details of offshore accounts held by its customers, in order to assist the tax authority in clamping down on tax evasion.

According to reports, the Special Commissioner explained that he had found in favour of HMRC because "the information that it has already obtained raises serious questions that merit investigation and cannot be investigated by any other means".

The tax authority has welcomed what it called a "landmark decision", stating that:

"The action is about fairness and about creating a level playing field for all taxpayers. HMRC will continue to ensure that all monies located offshore are lawfully taxed."

Although the ruling delivered this week concerned information held by Barclays, HM Revenue and Customs is now expected to pursue other financial institutions for customer data.

Speaking to Reuters, a Barclays spokeswoman confirmed this, arguing that:

"This is very much an industry issue and we are of the understanding that other financial institutions have been approached in the same way. Barclays hasn't been specifically targeted."

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