Emigrated.....now HMRC are after them....

elfieb

Hi all, not sure if I have posted on the right board, but looking for a little advice for a relative of mine.

To cut a very long story short....

Relative A emigrated to Australia in late 2007. Since 2008, Relative B has been recieving letters from HMRC for A. She opened one and found out they were regarding a late tax return. B decided to forward all letters on the A in Australia, and thought nothing more of it.

Last week B recieves a phone call from A who was fuming down the phone, that someone has given their new address details in Australia to HMRC. A's first response was "whats the big deal, they only want a self assesment return, and possibly a fine for getting it in late".......then a whole new can of worms in opened......

Before A left this country, he owned a number of properties which were sold. It appears no capital gains tax was paid.

Can anyone explain to me, what will happen now, so I can begin to put Relative B's mind at rest.
How would HMRC get the new address details in the first place...would someone have had to informed them of it?
Also what is the likely outcome for Relative A in Australia?

glider3560

If Relative A set up a mail redirection with Royal Mail to Australia, then these details would have been passed onto HMRC.

They may have got the details in some other way, e.g. from a financial company (bank) that they have dealings with or an employer.

laurel7172

HMRC will know relative A isn't in the country by the lack of current records.

So, where are you going to look for a tax fraudster abroad? Australia isn't exactly an obscure choice, nor will your relative be the first to try this on. HMRC will have a specialist team, and may even have reciprocal arrangements with the Australian tax authorities ( you pass on details about our criminals, we'll pass on details about yours). It was only ever a matter of time.

I don't quite get why relative B is worried; by passing on the letters they've done all that could reasonably have been expected of them, surely?

Dave101t

if CGT wasnt paid, then the relative is defrauding the system so well done for shopping them i say!

dzug1

laurel7172 wrote: »

I don't quite get why relative B is worried; by passing on the letters they've done all that could reasonably have been expected of them, surely?

I think the worry is that relative A will blame them for the situation and maybe thinks they should have destroyed or returned the letters.

AnxiousMum

In the relative's application for residency down in Australia, there will be checks done on criminal histories, and one that is usually done is to ensure that no tax is left payable in the country you are leaving. I would imagine it was rather simple for them to get the information of new address from Australian immigration when performing that one check.
Depending on the severity of it, Relative A might find that their right to remain in Australia is declined unless they deal with this right away.

elfieb

dzug1 wrote: »

I think the worry is that relative A will blame them for the situation and maybe thinks they should have destroyed or returned the letters.

Accusations are being thrown around left, right and centre, and relative B has become quite upset about it. At least now I can explain that they were probably the makers of their own downfall, and that no one individual "shopped" them in.

Jon_Tiffany

HMRC have significant powers to investigate people. It was probably only a matter of time before they caught up with your relative. Where tax is concerned its crazy to try and evade paying it, they always catch up with you in the end. Dont forget that HMRC can also investigate your tax affairs going back many years.

vikingaero

If all Relative A has done is to forward the letters in another envelope then they have done nothing that could be traceable.

sulkisu

elfieb wrote: »

How would HMRC get the new address details in the first place...would someone have had to informed them of it?
Also what is the likely outcome for Relative A in Australia?

Actually it's much simpler than that.

HMRC and UKBA (formerly IND - the part of the HOme Office which dealt with border control and immigration) entered into a partnership arrangement in 2007. As a result of this partnership HMRC now has responsibility for work which previously fell to UKBA (immigration, passport control, etc) and also certain topics previously covered by FCO including Visas and emigration. They have an agreement to share information between the two agencies.

Google 'HMRC/Home Office partnership agreement' for more information and a clearer explanation, but under the new arrangements HMRC will undoubtedly know if a UK citizen emigrates and where they have emigrated to.

Edit: Or just have a look on the HMRC website.