Tax Amnesty

In 2007 we assisted in many Disclosure cases of both a personal and corporate nature. 

There is a strong possibility that HMRC can seek, by way of correspondence, to further enquire into a tax payer's affairs to satisfy themselves that full disclosure has been made.

As an aside HMRC is extending its enquiry net into 170 further Financial Institutions, to include Building Societies and the small private Banks in the UK, and to obtain details of UK tax residents with Off Shore Bank Accounts.

The "tables" now seem to be turning to the EU in that the last three remaining non compliant Countries having regard to accepted banking practices, namely Liechtenstein, Monaco and Andorra are being pressured to fall in line.

Germany has a desire to effectively close the so called "undesirable" banking business of Liechtenstein down. The seriousness of its endeavours is illustrated in its unprecedented action by paying a Bank employee £3m for information on 700 hitherto secret accounts.

Having established this precedent, it surely signals the end of depositing funds in the so called "European Tax Havens".

HMRC is rumoured, albeit, at an early stage to be targeting Hong Kong and Singapore in a similar vein.

From 17th March 2008 HMRC will pursue individuals who did not notify their intention to disclose under the Offshore Disclosure Facility.

In the main this will be by way of a letter and an initial Form which will ask for information about their circumstances.  HMRC will use the replies to verify same against information they hold.

A concern exists that at present this approach would not appear to be under a Code of Practice.

IF YOU REQUIRE AN OPINION OR ASSISTANCE  please telephone either Brian Sochall or Nilufer Hoare on 020 7291 1000 for an initial consultation  or to arrange a meeting.   If disclosure is required a fixed fee will be agreed.