The answer is yes. If you are not entitled to have an undeclared foreign account (ie you are British domiciled) then I'm afraid he can not just grab what is there but he can also assess penalties.
Try an example; say you were living, working and domiciled in UK but that you requested your employer put your year end bonus in an account in Denmark. This would then be sent with no tax withheld and be undeclared in your tax return. I'm not suggesting you did all this by the way.
But your employer has to show where his turnover went and the bank account he sent your bonus to to would show up on his corporate tax return and could be investigated.
Or the bank in Denmark might do a 'sweep' for the British tax authorities of all their accounts that have UK addresses.
Either of these scenarios would lead the taxman to your doorstep. He would then ask you to explain yourself. If you could not, then he could take the money.
There is nothing to stop you having a Bank account anywhere you like providing the money you put into it comes from your net income after UK taxes have been paid.
If, however, you do some work for an overseas company and ask them to remit the money straight to a Bank in their country - without you declaring it to UK tax authorities and paying tax - you will be evading tax which is a criminal offence.
Generally as a UK resident you are only taxed on the interest you receive in a bank account, whether its in the UK or in Belize. So if you had 100 000 euro in the account and were earning 5% interest, the tax bill might be 1000 euro. Its not so bad is it? Not like you cant afford it ;)
Yes, especially as Denmark is in the EU. Whether the UK tax authorities are interested in the information they get depends on what's in the account.
good idea :P
not if you dont tell him about it.
