Last chance to benefit from the advantageous terms of the Liechtenstein Disclosure Facility (LDF) and the Crown Dependencies Disclosure Facilities (Isle of Man, Guernsey and Jersey) before they close at the end of the year. Anyone wishing to make use of these facilities must have registered before midnight on 31 December 2015.
The Government has announced that it is committed to taking a tougher stance against offshore tax evasion as a result of the significant increases in International Tax Transparency being introduced in the next few years, for example through the Common Reporting Standard (CRS). HMRC will be consulting on a new statutory requirement for taxpayers to come forward and correct any offshore compliance issues within a defined window. This new requirement will strongly underpin the tougher offshore disclosure facility which will launch in April 2016 and feature:
- a fixed penalty of 30% of the tax owed for all relevant years; and
- no immunity from criminal investigation. HMRC’s normal criminal investigations policy will apply;
In all other respects, taxpayers will now face the standard statutory treatment for a disclosure and therefore it is advisable to act now as from next year 95 more countries will be sharing information with HMRC about UK individuals holding bank accounts and assets in those countries, which will result in more detailed and valuable data being accessible to HMRC’s specialist investigators.
For more information please contact the Tax Investigations Team at Mark Davies and Associates.