Is it not too late to disclose Swiss tax liability.


 An excellent article in the financial Times is well worth a read

http://www.ft.com/cms/s/0/7309cb48-e1c5-11e4-8d5b-00144feab7de.html#axzz3Y2pwxGoo

HM Revenue & Customs (HMRC) has already received a huge amount of data about UK residents with Swiss bank accounts. There is an increase of criminal prosecutions.

New proposals including a “strict liability” rule a taxpayer could be deemed to have committed a criminal offence without the Crown needing to prove that he deliberately set out to conceal offshore income that is taxable. This Draconian measure can reverse the normal burden of proof.

However, if you act quickly you can still make use of the agreement between the UK and Liechtenstein — the Liechtenstein Disclosure Facility, or LDF — which caters perfectly for these circumstances.

Despite having no past connection to Liechtenstein, if you now create a presence there (such as a bank account) you can use the LDF to square matters with HMRC once and for all. Once you are registered to use it there is a guarantee of no prosecution for past tax underpayments and fraud.

HMRC can go back up to 20 years and levy tax, interest and penalties accordingly. Given the much higher interest rates 20 years ago, the interest for the first few years may well be more than the tax. Under the LDF, HMRC can only go back to 1999, with no tax charged on anything before then. The penalty is also relatively low, being 10 per cent to 20 per cent of the tax liabilities.

The LDF is also far less stressful than an HMRC investigation, as most of the investigation work is undertaken for you and presented to HMRC by a tax adviser. HMRC takes a back seat during that time.

In the 2015 Budget it was announced that the LDF will close at the end of 2015,

If you have a problem which HMRC consult Hylton-Potts. Your affairs will be kept strictly confidential and we have a free 24-hour email service on [email protected] and office hours’ telephone service 020 7381 8111

We would be interested in your comments, please leave them by clicking on the title to this blog above.