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Liechtenstein facility forecast to raise £3bn

19 June 2012
Issue: 4358 / Categories: News , LDF , Admin
Disclosure initiative clarified by third memorandum of understanding

More than 2,400 people have registered to come forward with details of unpaid tax under the Liechtenstein disclosure facility (LDF), with £363m already paid, HMRC have revealed.

The department expects the initiative – recently extended by 12 months – to bring in up to £3bn by its closure in 2016, based on the latest figures.

The LDF, which generated around £140m in the 19 months following its September 2009 launch, has received new clarification by way of a third joint declaration on the memorandum of understanding (MoU) on cooperation in tax matters between the UK and the Principality of Liechtenstein, which have also signed their first double taxation agreement.

The MoU reinforces the Liechtenstein’s taxpayer assistance and compliance programme arrangements between the two countries and makes available a single charge rate of 50% that investors of the alpine principality might apply to calculate undisclosed UK tax liabilities for the tax year 2010/11.

The UK's parliament is expected to ratify the agreement this year, so that it can take effect from 1 January 2013.

 

Issue: 4358 / Categories: News , LDF , Admin
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