Wealthy individuals appear to be holding out from taking HMRC’s New
Disclosure Opportunity in favour of the Liechtenstein Disclosure Facility
according to tax experts at PricewaterhouseCoopers.
After the January notification deadline passed PwC estimated approximately
13,000 individuals took the opportunity to register for the NDO which has
harsher penalties than the LDF and covers tax irregularities going back 20 tax
years rather than 10.
Stephen Camm tax partner at the firm said:
“In 2007 around 40,000 people registered under the Offshore Disclosure
Facility and HMRC raised approximately £400m.
We predict that around a third of that number have come forward this time
under the New Disclosure Opportunity and that HMRC is likely to collect around
“Governments in the UK and other territories are increasingly using
disclosure opportunities to recover unpaid tax liabilities, and we predict that
we will see large numbers of people , who might have come forward under the NDO
taking up the Liechtenstein Disclosure Facility that is currently underway.”
The NDO offered individuals with undeclared funds in offshore accounts to
make a voluntary disclosure to HMRC and minimise the costs of any unpaid
liabilities. Those that did not come forward now face penalties of up to 100%,
and then potentially being named and shamed.
“For those that have missed the boat the prospect of a call from HMRC is now
a very real as more and more financial institutions open up their records and
allow the taxman access to offshore account details.”
More to follow.
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