HMRC 'very pleased' with LDF progress

HMRC say they are happy with the progress of their Liechtenstein disclosure facility (LDF), in spite of suggestions that the department is not doing enough to promote the so-called tax amnesty.

Law firm McGrigors this week questioned the LDF’s efficacy, after Revenue data showed that 419 taxpayers registered for the long-running scheme in its nascent months from 1 September 2009 to 31 March 2010.

The company – a tax investigations specialist – claimed that 'HMRC is likely to be disappointed at the response', given that around 10,000 individuals put down their names for the six-month-long new disclosure opportunity (NDO) that closed earlier this year.

The remark was refuted by the Revenue, which said it was ‘very pleased with the number of people who have so far voluntarily registered’ for the Liechtenstein initiative. The department added that ‘the number [of sign-ups] is steadily increasing’.

Nevertheless, the director of tax investigations at McGrigors, Phil Berwick, claimed HMRC ‘had not done enough to publicise the LDF. To release the information only twice a year, as they intend to do, will not encourage those who may be wavering to come forward.’

Russell Pfeiffer, executive director of private banking of Centrum, a Liechtenstein-based bank, was in agreement with Mr Berwick. He said: ‘The process of opening a bank account in Liechtenstein is very simple. There is a lack of awareness among UK taxpayers that the LDF exists.’

The disclosure facility was launched by the taxman last summer (at the same time as the NDO). It will run until 31 March 2015, with the aim of encouraging UK residents with investments in Liechtenstein to clear their tax arrears. Penalties are limited to 10% of tax evaded provided the taxpayer provides full disclosure of his or her financial dealings in the Alpine principality.

Issue: 4266 / Categories: News , LDF , Liechtenstein disclosure facility , McGrigors , NDO , new disclosure opportunity , Phil Berwick , tax amnesty , Admin