Offshore Tax Investigations

Latest News

• The New Disclosure Opportunity (“NDO”) has now closed
• HMRC continue to target holders of offshore accounts using information supplied by banks
• 308 banks  have started to provide information to HMRC
• HMRC state that taxpayers who did not come forward under NDO may face penalties of up to 100% of the tax owed and some may face prosecution
• HMRC advise taxpayers who did not disclose under NDO that “it’s still well worth contacting HMRC”
• Moving funds to Liechtenstein may offer a second chance for those who did not disclose under NDO to escape prosecution, and also to legitimately limit the tax payable in cases where tax arrears go back to before 6 April 1999. 

Moving into Liechtenstein is a highly complex issue and you must take specialist advice before taking action.

HMRC Target Offshore Account Holders

Now that the New Disclosure Opportunity has closed, HMRC have vowed to track down offshore account holders who did not come forward. 308 banks are providing information to HMRC about customers who hold offshore accounts and HMRC say that they will use this information to identify those who owe tax.

People who did not come forward under the NDO and are subsequently discovered by HMRC risk the following consequences:

• A wide-ranging investigation of all their business and personal affairs
• Penalties of up to 100% of the tax owed
• Public “naming and shaming” where tax of more than £25,000 has been deliberately evaded
• Criminal prosecution

The good news is that the worst of all these consequences can still be avoided if a voluntary disclosure is made to HMRC before they start an enquiry. HMRC emphasised this in a statement issued on 7 January 2010 which is reproduced aside.  So, if you are worried that you have missed the chance to come forward under the NDO, there is still time to put things right. Also, under the right circumstances, the Liechtenstein Disclosure Facility (“LDF”) may offer an even better alternative to the NDO.

If you are reading this web page now, you probably fall into one of the following two categories.  Click the relevant one for more information:

• I did not disclose under the NDO but am worried that I might owe tax
• I have received a letter from my bank or from HMRC about my offshore account

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