Further proof needed to use Liechtenstein tax amnesty
Individuals will need local certification before using Liechtenstein Disclosure Facility
INDIVIDUALS LOOKING to use the Liechtenstein tax amnesty will now need to provide further proof that they have a ‘meaningful connection’ to the country.
Potential users of the Liechtenstein Disclosure Facility will need a certificate from a local financial intermediary under changes to the initiative.
HM Revenue & Customs published its revised frequently asked questions document on 11 November. From 1 December, individuals will require “confirmation of relevance” before registering for the facility, which gives taxpayers the opportunity to regularise their tax affairs with lower penalties and an immunity for prosecution.
When the facility was launched in 2009, individuals needed to show a “meaningful connection” to Liechtenstein to enter the LDF. In February this year, HMRC clarified that this required a 5% investment of an individual’s assets in a Liechtenstein company.
HMRC has said that it will not withdraw or suspend LDF registration if the investment is later changed.