Only 419 register for Liechtenstein amnesty: McGrigors

Liechtenstein castle

419 taxpayers have registered for the Liechtenstein Disclosure Facility out of the "thousands" eligible to do so, law firm McGrigors said today.

The low response rate to the LDF, which runs until 2015, comes after it emerged just 1,500 medical professionals had registered for a special tax amnesty out of the 30,000 believed to have undisclosed tax liabilities.

It had been hoped that the more favourable terms of the LDF amnesty, including only having to come clean about undeclared tax liabilities in offshore accounts going back ten years - compared to 20 years in the New Disclosure Opportunity - would act as a draw.

However, the law firm said HMRC figures showed just 419 taxpayers have registered for the LDF between 1 September 2009 and 31 March 2010. This compares to approximately 10,000 who registered for the NDO.

Phil Berwick, director of tax investigations at McGrigors, said: "It is surprising how few taxpayers have registered for the LDF. Many more probably would have done so, but were unaware that they qualified, or even that the LDF existed."

"Many taxpayers could have reduced their tax, interest and penalty bill by a significant amount by using the LDF. Overall, we could be talking about millions of pounds here."

The taxman remained optimistic despite the relatively low numbers. "HMRC is very pleased with the number of people who have so far voluntarily registered for LDF, and that the number doing so is steadily increasing.

"Unlike other short term disclosure opportunities, registration for LDF is available until 2015," he added.