HMRC extends Liechtenstein Disclosure Facility
HMRC has extended the Liechtenstein Disclosure Facility after 2,000 UK taxpayers came clean under the agreement.
HMRC says the number of respondent has exceeded its expectations.
The LDF, which launched on September 1, 2009, means after full disclosure a fine of up to 20 per cent of tax due will be levied instead of 100 per cent, with tax interest and penalties only sought for the previous 10 years rather than the previous 20.
Permanent secretary for tax Dave Hartnett says: “As the number of disclosures already exceeds the total we originally expected for the whole period of the LDF, we have agreed with the Liechtenstein government that it makes sense to extend the facility by one year to April 5, 2016.”
HMRC has also introduced a double taxation agreement with Liechtenstein, which will implement new laws ensuring exchange of information arrangements.
Liechtenstein was the only European Economic Area member without a DTA with the UK.
Exchequer Secretary David Gauke says: “This Government is committed to ensuring that offshore income is properly taxed.
“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.”