Tax investigation specialists at Grant Thornton are urging all companies with connections to offshore tax havens to review all relevant transactions in the light of a new Inland Revenue crackdown on cross-border tax fraud.
Gary Ashford, senior tax investigations manager, said: "We are aware the Revenue has recently set about reviewing the files of all companies and individuals with offshore connections as part of a national initiative.
"The aim is to investigate transactions between UK individuals and companies with tax havens on matters such as purchases, sales, rents, management fees and royalties."
He said the transactions would be open to challenge if they had not been carried out at a wholly commercial rate.
As part of the review, the Inland Revenue is also seeking to identify the beneficial owners of tax haven parent companies as well as stand-alone tax haven companies undertaking transactions with UK properties.
Mr Ashford advised any individual or firm subject to investigations involving offshore structures to consult qualified specialist tax advisers.
Source: ic Coventry
