You are here: Home - Retirement - Retirement planning - News -

HMRC reveals Liechtenstein tax haul

0
Written by:
11/06/2012
More than 2,400 people have registered to disclose unpaid tax under the Liechtenstein Disclosure Facility (LDF) with £363 million already paid in tax bills, according to HM Revenue and Customs (HMRC).

More than 2,400 people have registered to disclose unpaid tax under the Liechtenstein Disclosure Facility (LDF) with £363 million already paid in tax bills, according to HM Revenue and Customs (HMRC).

The Liechtenstein Disclosure Facility (LDF) was signed in August 2009 and was originally scheduled to run from 1 September 2009 to 31 March 2015. It has since been extended to 5 April 2016.

The yield of £363 million is made up of £296 million generated from settled cases and £67 million paid in cases not yet settled. The agreement allows investors in Liechtenstein who are liable to UK tax to legitimise their tax affairs for the past and ensure they are tax-compliant for the future.

It is underpinned by a tax information exchange agreement, signed in August 2009, and by special legislation in Liechtenstein. More than 2,400 people have registered to disclose unpaid tax under the Liechtenstein Disclosure Facility (LDF) with £363 million already paid in tax bills, according to HM Revenue and Customs (HMRC).

The Liechtenstein Disclosure Facility (LDF) was signed in August 2009 and was originally scheduled to run from 1 September 2009 to 31 March 2015. It has since been extended to 5 April 2016.

The yield of £363 million is made up of £296 million generated from settled cases and £67 million paid in cases not yet settled.

The agreement allows investors in Liechtenstein who are liable to UK tax to legitimise their tax affairs for the past and ensure they are tax-compliant for the future.

It is underpinned by a tax information exchange agreement, signed in August 2009, and by special legislation in Liechtenstein. Based on current figures, the LDF is now expected to bring in up to £3 billion by 2016.

The figures were released as the United Kingdom and the Principality of Liechtenstein prepared to sign a double taxation agreement (DTA), the first between the two countries.

At the same time, the UK and the Principality of Liechtenstein will sign a third Joint Declaration on the Memorandum of Understanding (MOU) on cooperation in tax matters.

This further clarifies the Liechtenstein Disclosure Facility [HMRC] and the Taxpayer Assistance and Compliance Programme [Liechtenstein] arrangements between the parties.

It makes available a Single Charge Rate of 50 per cent that Liechtenstein investors might apply to calculate undisclosed UK tax liabilities for the tax year 2010/11.

Dave Hartnett, Permanent Secretary for Tax at HMRC, said the third Joint Declaration recognises the overwhelming success of the LDF.

“HMRC originally estimated the number of people who would register for the disclosure facility at 2,000, and that it would probably produce £1 billion. In light of the ongoing success of the LDF we now anticipate the arrangements will produce up to £3 billion from a much larger number of people.”

The Exchequer Secretary, David Gauke, reiterated that the government is determined to clamp down on tax avoidance at home and abroad.

“The UK has the largest tax treaty network in the world but, until now, Liechtenstein was the only country in the European Economic Area we had no agreement with. This new treaty and the existing disclosure facility show that the net is closing on those who try to evade their UK tax liabilities by using offshore structures – there are fewer and fewer places to hide.”

 

Parliament is expected to ratify the agreement this year, so it can take effect from 1 January 2013

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2182488-departures
Holidaymakers warned about high excess levels

Holidaymakers who claim on their travel policies this year could pay the price of sharply rising excess levels.

Close