HMRC Offshore Disclosure Initiative
HMRC Offshore Disclosure Initiative
HMRC Offshore Disclosure Initiative
In 2006 ,HMRC obtained access to details of offshore accounts held by the clients of the five High Street Banks and in 2007 gave them the chance to make a full disclosure and settle any unpaid taxes with a concessional penalty of 10% of the unpaid taxes .
HMRC now has access to offshore accounts with clients of other banks and financial institutions .
Under the New Disclosure Opportunity ( NDO ) , anyone who makes a complete and accurate.disclosure between 1st September 2009 and 12th March 2010 will qualify for a 10% penalty .Anyone who chooses not to take this opportunity and who is found to have undeclared tax liabilities is likely to face a penalty of at least 30% or criminal prosecution .
Anyone who did not take up the deal offered by the Offshore Disclosure Facility ( ODF ) in 2007 which also offered a 10% penalty can now make a disclosure under the NDO but the penalty will be 20% .
The NDO allows anyone with unpaid taxes linked to offshore accounts or assets to settle their tax liabilities at a favourable penalty rate of 10% . Offshore means anywhere outside the UK and includes Channel Islands , Isle of Man and Republic of Ireland Assets will include any possession or property available to meet debts e.g. bonds and other financial products , land and property , trusts , business interests , yachts and vehicles .
To use the NDO you must notify HMRC of your intention to disclose . This can be done in writing between 1st September and 30th November 2009 , or electronically between 1st October and 30th November .Disclosures should then be made in writing between 1st September 2009 and 31st January 2010 or electronically between 1st October 2009 and 12th March 2010 .
TICS will provide confidential advice and assistance to anyone who thinks that they should be considering a disclosure under the NDO ..
Submitted by Wade Hyde on Wednesday 19th August 2009