'We’re after you' warning to income tax evaders
‘THE net is closing in’ on islanders who are not paying all the income tax they should be doing, the Revenue Service has warned.
Some 3,000 people missed the February deadline for filing 2022 returns and there are still some 1,200 returns outstanding for 2021, despite penalties being levied.
Revenue Service director Nicky Forshaw said that pursuing non-payment of tax was required both for funding local services and for the island’s international obligations.
‘Tax administrations the world over experience varying levels of non-compliance with the tax-paying public meeting the requirements of the relevant legislation,’ she said.
‘In Guernsey it is acknowledged that most of the population voluntarily comply with these obligations, as they recognise paying the right amount of tax at the right time ensures our island community can support the provision of our essential services, including health services, education, and many others.
‘There are, however, a minority of the tax-paying population who do not comply with their obligations, as reflected in the National Risk Assessment.’
The Revenue Service works closely with the Financial Intelligence Unit, Population Management, the Economic & Financial Crime Bureau and Social Security benefits.
Information-sharing helps identify people not complying with the law.
Mrs Forshaw said that if islanders who are aware that their tax affairs are not in order were to contact the Revenue Service with a full disclosure, enforcement sanctions would be reduced.
‘For those in the minority that continue to seek to evade tax, once discovered they will face the full extent of enforcement provisions available to the Revenue Service.’
This includes, for cases of tax evasion, the imposition of penalties up to three times the person’s income tax liability for the year, through to the matter being referred to the Economic & Financial Crime Bureau for consideration of commencing an investigation into criminal offences.'
‘The net is constantly closing ever tighter on those who choose not to pay the right amount of tax, and in doing so impacting the ability for the island to support essential public services, such as healthcare and education,’ she added.
‘The overall framework of the “whole of government approach” to tackling financial crime in Guernsey means that the chances of getting caught are ever-increasing and, the price of that non-compliance will be far greater than the original tax saving, including the potential of a criminal record,’ said Mrs Forshaw.
Anonymous reporting
A confidential hotline is in place for anonymous reports of suspected evasion of income tax, contributions or secondary pensions. Reports can be made by calling 227900 or emailing TaxHotline@gov.gg.
