Posted by Nick Day on 14 Jun 2012
Tax Raised from Hidden Liechtenstein Accounts
Up to £3bn is set to be raised by 2016 from British taxpayers who have placed money in Liechtenstein, which is more than the £1bn that was initially expected.
It is thought that 5,000 Britons have their wealth held in secret accounts in Liechtenstein, in some cases going back generations. More than 2,400 people have now come forward to pay their unpaid taxes and penalties since the Liechtenstein Disclosure Facility (LDF) was signed three years ago.
Those who own up to what they have done could face penalties amounting to only 10% of the tax they have avoided but they will still have to pay taxes and interest going back up to 10 years.
Anyone who fails to come forward will face tougher fines of up to 200% of their unpaid tax, as well as back taxes, interest and in some serious cases, prosecution.
Co-operation between the UK and Liechtenstein authorities has been strengthened further by a formal double-taxation agreement between the two countries which will ensure people are paying the right amount of tax and not being taxed twice.
We can assist you if you need to make a disclosure and correspond on your behalf with HM Revenue & Customs (HMRC), ensuring that your disclosure is treated properly and fairly under the LDF.
If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or email@example.com
- Main Residence Exemption – Update on Recent Court Cases
- Top 10 Expat Tax Tips for Individuals Moving to the UK
- Property Partnership Incorporation and SDLT
- Non-Resident Landlords – UK Tax Update
- Tax Relief For Residential Mortgages