TaxPersonal TaxLiechtenstein amnesty yields £300,000 per disclosure

Liechtenstein amnesty yields £300,000 per disclosure

The LDF yielded 475 successful disclosures up to March 2011, bringing in £140m for the Exchequer

THE LIECHTENSTEIN DISCLOSURE FACILITY is yielding an average of £300,000 per disclosure, Accountancy Age can reveal.

A freedom of information request showed there had been 475 successful disclosures by 31 March 2011. HM Revenue & Customs announced earlier this year that it had already raised £140m by the same date. This works out at around £294,000 per disclosure.

The Taxman had originally targeted a yield of £1bn from 5,000 disclosures but has been thought to have revised this figure closer to £3bn.

HMRC is on course for its target of 5,000 registrations by 2015, having confirmed that 1,351 people had registered by 31 March this year. However, at current levels, this will bring in £1.5bn for the Exchequer by 2015.

Frank Strachan, head of tax at Lass Salt Garvin, said: “From HMRC’s perspective, the average yield per case looks impressive, particularly when compared to the averages from more recent offshore amnesties. That said, the average is weighted heavily by some significant liability disclosures because the majority of disclosures we are submitting on behalf of clients are coming in at well under £300,000.

“If they do end up with £1.5bn, that is still an effective use of HMRC resources.”

Gary Ashford, national head of tax risk at RSM Tenon, said that the rate of registrations will likely increase as Liechtenstein banks begin reviewing their own clients.

“The original agreement was that financial intermediaries would audit their own clients to find links with the UK. That is now in place. So those that have not come forward may well receive a letter.”

This should increase the average because, historically, the sums of money in Liechtenstein banks are significant, Ashford added.

 

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