Under the Liechtenstein Disclosure Facility, British taxpayers with bank accounts in the tiny European principality are able to settle their tax liabilities in favourable terms. Those who come forward under the agreement could face penalties amounting to just 10% of the tax they’ve evaded; although they will still have to pay back tax and interest, going back up to 10 years.
Taxpayers who fail to volunteer their actions face much tougher penalties, with fines amounting up to 200% of their unpaid tax and in the most serious cases prosecution.
The LDF was due to end at the end of March 2015, but because of strong demand, the disclosure facility is now set to run until April 5th 2016 – with HMRC claiming that since the LDF came into affect in 2009, 2,000 people have so far come forward, which has exceeded expectations.
The LDF has also been incorporated into a double taxation agreement between the two governments to ensure that taxpayers aren’t taxed twice on their income.
Exchequer Secretary, David Gauke, said: “Today's agreement takes that commitment forward by providing greater transparency and certainty to the taxpayers of both our countries about how their incomes and gains will be taxed."
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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