HMRC is getting tougher on evaders onshore and offshore. If your offshore account is not fully tax compliant now is the last chance to take advantage of the Liechtenstein Disclosure Facility (‘LDF’).
New measures to be introduced shortly will give HMRC a significant number of extra powers to fight tax evasion and avoidance. An investment of £750m will provide the necessary resources to maximise the benefit from the new powers.
The LDF, which allows you to disclose offshore irregularities, is the most favoured route as it guarantees immunity from prosecution. Those with accounts located other than Liechtenstein can benefit from its terms by opening an account in Liechtenstein.
The current opportunities are to be replaced by another ‘last chance’ opportunity but the terms will be less favourable; those who do not utilise the LDF, and voluntary disclosure, face the possibility of criminal prosecution in the future.
Further, the Government is consulting on a new strict liability criminal offence for offshore tax evasion. HMRC will not need to prove intention to evade tax, only that undeclared assets had been held offshore. The maximum penalty could be 6 months’ imprisonment and much higher financial penalties.
Three key reasons to call us -
- Avoid criminal prosecution.
- Reduce the number of years where tax is payable; ordinarily it’s 20 years.
- Lower penalties; 10% of the tax due.