THE UK tax authorities have been given permission to order a financial institution to provide information about offshore accounts.

In a landmark ruling this week the Revenue and Customs Commissioners have authorised tax inspectors to serve a notice ordering the organisation to provide documents about UK customers with credit cards associated with offshore accounts.

The institution in question has not been named but is known to be operating in the Channel Islands and the Isle of Man.

According to an article in yesterday’s Financial Times, it is widely believed to be a high street bank.

HM Revenue say the investigation could bring in up to £374 million of extra tax.

Practitioners in Jersey suspect that the ruling could now generate a surge in similar notices being sent to other banks, although the institution could appeal against the decision.

Jason Laity, executive director at KPMG Channel Islands, said that the potential impact was serious.

‘Given their success, it would be very surprising if the Revenue were not now considering further notices on other institutions who meet the same criteria.’