Liechtenstein deal extended by HMRC

HM Revenue & Customs has extended the Liechtenstein disclosure facility after 2,000 UK taxpayers came clean under the agreement.
HMRC says the number of respondents exceeded its expectations.

The LDF, which started 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 years.

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.”
Calculis chartered financial planner Alex Pegley says: “It would be better for HMRC to get the money onshore and tax it here but 20 per cent of something is better than 100 per cent of nothing.”