Liechtenstein Disclosure Facility

5,000 British investors with an estimated £2-3bn in secretive Liechtenstein bank accounts are being offered special terms if they make voluntary disclosures under a ground-breaking tax amnesty called the Liechtenstein Disclosure Facility (LDF).
Anyone in the UK with an offshore bank account or structure in Liechtenstein can come clean using the Liechtenstein Disclosure Facility on even better terms than on offer under the New Disclosure Opportunity.  The penalty level will be the same (10%) but HMRC will only go back 10 years, rather than the statutory maximum of 20. There is an assurance that investors who come forward will not be criminally prosecuted for tax evasion.
Brits have 5 years from 1st September 2010 to declare any assets they hold via the principality.   Anyone who fails to make a full disclosure by 31st March 2015 will have their accounts closed.  Banks and trust companies will have to prove this by being subject to independent checking.  Investors could simply move their money without informing HMRC - but would be vulnerable to being reported under the anti-money laundering rules.
Liechtenstein will not be handing over bank details to the UK as part of this deal.  But a new Tax Information Exchange Agreement (TIEA) has also been signed that will enable the UK and Liechtenstein to exchange information to ensure the right tax is paid in each country in future.

Dave Hartnett, HMRC's chief tax inspector, said: "Those who have been evading UK tax on assets held in Liechtenstein banks must now settle with us. There are no alternatives."  He warned that those who ignored the disclosure oportunity could face penalties of up to 100% of the tax evaded or even prosecution, when HMRC caught up with them.

What does this mean for me?
If you have any undeclared tax liabilities and also an offshore bank account or offshore assets (including in Liechtenstein) or any offshore property then you can use the LDF, NDO or the pre-existing voluntary disclosure routes.  If you have very straightforward tax affairs you may be able to handle the disclosure yourself or with the help of your usual general practitioner accountant.  If your tax affairs are more complicated then you may need specialist help.  Complex issues include: you have several sources of income; your offshore accounts are more than 6 years old; you hold accounts in joint names; you're a UK trader who has undeclared trading income; your domicile or residence status is unclear; you are non-domiciled but your remittance pattern is complicated; you're an executor of an estate that did not declare the offshore asset/ bank account for IHT purposes; you're currently subject to a tax enquiry or investigation; you have assets held via Liechtenstein; you are associated with a Liechtenstein structure (such as an anstalt; trust enterprise; trust reg.; treuunternehmen; establishment; trust; treuhandschaften; foundation or stiftungen.

If you are concerned about an offshore bank account or offshore assets, or have any historic tax liabilities that are worrying you, or think the Liechtenstein Disclosure Facility or the NDO tax amnesty may benefit you: then Lynam Tax Enquiry Experts can help.  We have enormous experince of delaing with tax disputes and disclosures involving offshore structures.  We have several clients whom we are assisting with the LDF already.

Call today for a confidential, discreet discussion with our experienced Tax Dispute Specialists.
Call Paul Lynam now on 0845 643 9997