Taxman speaks out over amnesty confusion

The taxman has spoken out over “confused” individuals disclosing offshore accounts through the Liechtenstein facility (LDF) rather than through the government’s own New Disclosure Opportunity (NDO).

Dave Hartnett, permanent secretary for tax at HMRC, told Accountancy Age today that there was evidence advisers were suggesting to clients they could use the Liechtenstein facility rather than the NDO.

“People are being confused," said Hartnett.

HMRC has already given notices to 308 financial institutions in the UK to provide them with details of their customers’ offshore accounts, and customers are expected to use the NDO to provide details of potential tax owed in these accounts.

If HMRC successfully obtains information on a customer’s offshore accounts through these notices, that customer cannot disclose their accounts through the more lenient Liechtenstein facility.

The LDF is intended for UK citizens to reveal tax owed from their offshore accounts in Liechtenstein.

Hartnett confirmed that if data on a UK citizen from within the 308 banks reveals their account was opened abroad, “only then can the Liechtenstein facility be used for disclosure.”

Hartnett concluded: “We want to get the message out you cannot just use the one that suits you best.”

Further reading:

OAPs race with death to amnesty finish line