Latest News

Medical professionals offered “Tax Health Plan” Tax Amnesty

January 10th, 2010

HMRC issued a press release today launching a wholly new concept in UK tax compliance – an incentivised disclosure initiative aimed at a particular sector: in this case members of the medical and dentist professions.
The taxman said: “Medical professionals are being encouraged under a new Tax Health Plan to tell HM Revenue & Customs (HMRC) if they have understated income. Those who contact HMRC by 31 March 2010 to make a voluntary disclosure will be able to put their tax affairs in order simply and on the best available terms. After that date, using information it holds about how much is paid to them, HMRC will carry out targeted investigations aimed at medical professionals who have not come forward. Substantial penalties of up to 100% of the tax due or even criminal prosecution could follow for those who have undeclared tax liabilities.”

The Health Plan (THP) is the first initiative in a new HMRC tax amnesty campaign focused on professionals. They aim to make it easier for taxpayers to put their tax affairs right.

HMRC’s Director of Risk and Intelligence said: “Our aim is to make it as easy as possible for people to come forward, make a full disclosure and benefit from the certainty of a reduced 10% penalty that HMRC is making available to those who qualify for this opportunity. The message is clear: contact us before we contact you.”
The Health Plan will operate in two stages. From 11th January to 31st March 2010, medical professionals can register their intention to make a voluntary disclosure with HMRC. By 30th June, those who have registered must have made their disclosure as well as arrangements to pay all tax interest and penalties due.

The various tax amnesty processes are straightforward in simple cases. But there are many pitfalls for the unwary or those with more complex tax affairs. Badly managed Disclosures can have the reverse effect; leading to higher penalties; a Civil Investigation of Fraud enquiry; or even prosecution.

Your usual accountant may be able to help: but sometimes a specialist consultant is required rather than a general practitioner. Lynam Tax Enquiry Experts have vast experience of handling disclosures to the taxman and tax enquiries. In fact it’s all we do – because we are deep specialists.

For a free, private, no obligation consultation, don’t delay, call Paul Lynam today: on 0845 643 9997

NDO registration shuts at midnight

January 4th, 2010

Anyone wanting to take advantage of HMRC’s New Disclosure Opportunity (NDO – aka the Tax Amnesty) has to register their intention to disclose by the end of today: 4th January 2010.

The registration process is simple and can be done online at HMRC’s website.

A full disclosure and payment has to be made by the 12th March 2010.

If you have a disclosure to make but miss the NDO then there are other ways that Lynam Tax can help you.

Lynam Tax Enquiry Experts had substantial experience of the first Tax Amnesty (Offshore Disclosure Facility) and are helping many clients and their agents with both the current tax amnesties: the New Disclosure Opportunity and the Liechtenstein Disclosure Facilty.

For a free, private, no obligation consultation, don’t delay, call Paul Lynam today: on 0845 643 9997

Taxman warns: “DON’T MISS THE BOAT”! 7 days to deadline

December 28th, 2009

HMRC have issued a press release urging people with undisclosed offshore assets and undeclared income and gains to jump on board the Tax Amnesty lifeboat, come onshore and come clean before the deadline for registration expires on 4th January.

The taxman’s chritmas warning said:

Taxpayers with undisclosed offshore investments have just one more week to come forward under the New Disclosure Opportunity (NDO).

To take advantage of this final opportunity to benefit from the 10% penalty rate all that has to be done is notify HMRC by 4 January 2010.
Notification can be done online and does not require any tax calculation or payment. HMRC simply needs a few details in order for the taxpayer to be included in the NDO. Once the scheme’s doors are closed those found to have undisclosed offshore assets will be subject to full tax investigation, penalties of up to 100% and in the most serious cases criminal prosecution.
HMRC has issued statutory notices to over 300 banks in the UK requiring them to provide information about customers with offshore accounts. This information is starting to come in and it will be used to ensure that everyone pays the right tax.
The Financial Secretary to the Treasury, the Right Hon Stephen Timms MP, said: “The use of offshore accounts to evade UK tax is illegal. It deprives the UK of tax revenues to fund essential public services and is unfair to the vast majority of honest taxpayers who pay what they should. I urge anyone in this position to come forward and sign up. Time is running out but it’s still not too late.”
Dave Hartnett, HMRC’s Permanent Secretary for Tax said; “From 5 January HMRC will begin to investigate those who were eligible to use the NDO but failed to do so. Penalties could then be increased to 100 percent of the tax evaded – wiping out any advantage from going offshore in the first place. Notification of intention to use the NDO could reduce this by 90%. By 5 January it will be too late so I strongly urge anyone who thinks they have something to tell us to come forward now as HMRC will follow up all undeclared off shore accounts where there is significant tax to pay.”

The NDO process is straightforward in simple cases. But there are many pitfalls for the unwary or those with more complex tax affairs. Badly managed Disclosures can have the reverse effect; leading to higher penalties a Civil Investigation of Fraud enquiry or even prosecution.

For a free, private, no obligation consultation, don’t delay, call Paul Lynam today: on 0845 643 9997

New double-whammy penalties for offshore tax evaders

December 9th, 2009

The taxman is bringing in new swingeing penalties (on top of the existing penalties) for anyone who evades tax using an offshore bank account.
HMRC hijacked Alistair Darling’s pre-Budget speech for some PR for the tax amnesties: the New Disclosure Opportunity (NDO) and the Liechtenstein Disclosure Facility (LDF). The chancellor announced the introduction of a new additional and hard hitting penalties regime; which could result in tax evaders facing combined penalties of up to 200% of their unpaid tax (as well as having to pay over the tax and interest). A 40% taxpayer failing to disclose £10,000 of income arising offshore could have to pay the taxman as much as £12,000 plus interest! As the tax and interest can go back up to 20 years that could be a staggering bill compared to the tax that would have been due. Tax evasion can be simply not declaring it on your tax return when you should have done.
For anyone undecided about whether of not to disclose under the current amnesties (whose 10% penalty is looking increasingly generous) the risk equation has been given a big jolt. People using the NDO for insatnce will have to stump up tax plus 10% penalty. For the next year NDO- avoiders wil then have to pay tax plus 30% or more if caught. But by 2011 NDO refuseniks will have to pay tax plus at least 60% if caught! And that’s the lucky ones who don’t get prosecuted!! Suddenly failing to disclose is looking a much riskier bet.
The new measures will also make it a legal requirement for offshore bank accounts to be declared to the taxman at the time they are opened – or presumably straight away if an account is already open. Failure to do so will be another offence in its own right; with yet further penalties. The message is clear from HMRC: take the small carrot now or risk the very big stick!

The offshore tax amnesty processes are straightforward in simple cases. But there are many pitfalls for the unwary or those with more complex tax affairs. Badly managed Disclosures can have the reverse effect; leading to higher penalties; a Civil Investigation of Fraud enquiry; or even prosecution.

For a free, private, no obligation consultation, don’t delay, call Paul Lynam today: on 0845 643 9997

10 things you should know about the New Disclosure Opportunity

December 8th, 2009

The New Disclosure Opportunity (akaTax Amnesty 2009) is HMRC’s initiative to get people to fully disclose tax irregularities related to offshore bank accounts and assets. We thought you’d appreciate a simple guide to the key stages.

1. The New Disclosure Opportunity is an initiative from HMRC to enable UK taxpayers to clean up their historic tax irregularities by: first registering for the scheme and then going on to make a full disclosure; in return for a reduced penalty of only 10%. It’s only available to people with offshore bank accounts or assets “related” to the tax underpaid. But a parallel informal scheme operates for “onshore” disclosures. There is also a similar scheme called the Liechtenstein Disclosure Facility (see our other pages for details).

2. “Notification of Intention to Disclose” has to be made by 4 January 2010; to receive a “Disclosure Reference Number”.

3. You then have to make a Full Disclosure and payment in full within the disclosure windows: 1/9/09- 31/1/2010 for hard copies; 1/10/09- 12/3/2010 online.

4. The NDO covers all taxes: e.g. Income and Corporation Tax, VAT, CGT, IHT.

5. Agents can make the Disclosure for you but you have to confirm its accuracy.

6. The Disclosure has to cover all relevant years, up to a maximum of 20 years.

7. Accepted Disclosures will get a fixed penalty of 10%. But if you received a letter from HMRC as part of the Offshore Disclosure Facility (tax amnesty 2007) the penalty will be 20%.

8. No penalties are charged where the tax liability is less than £1,000.

9. Full payment of all tax, interest and penalties must be made with the Disclosure.

10. People who don’t disclose now and are then found to have tax liabilities relating to offshore assets/accounts can expect penalties of 30% -100% and run the risk of criminal prosecution.

For a free, private, no obligation consultation, don’t delay, call Paul Lynam today: on 0845 643 9997

Jail and Confiscation for Offshore Tax Fraudster

November 29th, 2009

The taxman has secured a criminal conviction (and a swingeing confiscation Order) in an offshore bank account related tax investigation. HMRC are clearly keen to publicise the risks of not taking part in the tax amnesties (the New Disclosure Opportunity and the Liechtenstein Disclosure Facility) as they have headlined the story on the front page of their website under the NDO heading: “Why should I come forward now?”.

The taxman says: “HMRC is obtaining details of offshore account holders from hundreds of financial institutions. HMRC is introducing NDO as the final opportunity for those account holders with tax to pay to get their affairs up to date with the benefit of a fixed penalty. HMRC will pursue those with offshore bank accounts and undeclared tax liabilities who decide not to make a disclosure. In these cases the penalties could be up to 100% of the tax due and in exceptional circumstances criminal investigation may be considered.”

They then go onto relate the cautionary tale of convicted tax fraudster 60 year old David Dalrymple from Cambridgeshire who was ordered to pay £3.6million following a confiscation order made by Cambridge Crown Court in September 2009. Dalrymple had an interest in assets including a £2million trust fund in Jersey. The confiscation order ended a five year investigation by HM Revenue & Customs (HMRC) that resulted in two men being jailed for a total of five years in 2007 and the “unravelling of a sophisticated tax fraud” of over £2million. The fraud involved suppliers paying rebate payment to two offshore companies owned by a Jersey trust of which Dalrymple and his family were the beneficiaries. Between March 1995 and March 2001, Dalrymple diverted over £2.5 million of commissions resulting in over £1.2 million lost tax.

HMRC said “if Dalrymple had operated honestly the correct tax [£1.2 million] would have been paid…but instead he chose to conduct a fraud…and not only was a custodial sentence awarded but he has had to pay a considerable additional amount in confiscation.” The confiscation order was for £3,668,000. The tax lost was nearly £2million the suppressed turnover was over £3million “in his hands” (£3.6million with interest) and legislation under the Criminal Justice Act 1988 enabled HMRC investigators to obtain an order for the greater amount.”

Anyone wanting to benefit from the advantageous terms of HMRC’s New Disclosure Opportunity now has until 4th January 2010 before the initial registration period ends. Anyone who registers for the New Disclosure Opportunity Tax Amnesty in time will have until 12 March 2010 to send in their full disclosure. But if you miss the registration window you will not be able to participate and will miss out on the lower penalty terms; and risk an intrusive investigation and possibly prosecution.

Lynam Tax Enquiry Experts can help you with the registration and the disclosure. The NDO process is straightforward in simple cases. But there are many pitfalls for the unwary or those with more complex tax affairs. Badly managed Disclosures can have the reverse effect; leading to higher penalties a Civil Investigation of Fraud enquiry or even prosecution.

Lynam Tax Enquiry Experts have substantial experience of the first Tax Amnesty (Offshore Disclosure Facility) and the New Disclosure Opportunity and can help you with the registration and the disclosure.

Do not delay. For a free, private, no obligation consultation, call Paul Lynam today on 0845 643 9997

Offshore Registration extended to New Year

November 27th, 2009

HM Revenue & Customs (HMRC) have today announced that they are giving taxpayers with offshore investments more time to come forward under the New Disclosure Opportunity (NDO) Tax Amnesty.

The registration deadline has been moved from 30 November to 4 January 2010 as some banks need more time to contact their offshore customers
The NDO Tax Amnesty is an incentivised disclosure opportunity for taxpayers to obtain favourable terms when they tell HMRC about offshore investments which they have not previously disclosed. HMRC is currently trying to obtain information from 308 banks in the UK about their offshore customers.
Dave Hartnett, HMRC’s Permanent Secretary for Tax said: “We know that some bank customers will not be contacted by their banks in good time for the original deadline of 30 November so in the interests of fairness we have decided to extend our deadline by a month to 4 January. I strongly urge anyone who has been hiding taxable assets offshore to go on line and register. The NDO is voluntary but from the start of the New Year we will begin to investigate those who were eligible to use the NDO but instead buried their heads in the sand. Don’t let that happen to you.”

Lynam Tax Enquiry Experts can help you with the registration and the disclosure.

Do not delay. For a free, private, no obligation consultation, call Paul Lynam today on 0845 643 9997

New Tax Information Exchange Agreement between UK and Jersey: 27th November 2009

November 27th, 2009

A new Tax Information Exchange Agreement (TIEA) between the UK and Jersey came into effect 27th november 2009, radically amending the 1952 arrangement. It’s seen by the UK taxman as a crucial step in “combating tax avoidance and tax evasion”.
HMRC Chief Tax Inspector, Dave Hartnett, said: “The importance of this TIEA with Jersey should not be under-estimated. It will enable us to obtain the information we need to ensure that the days when putting assets off shore provided an unfair tax advantage are well and truly over.”

TIEAs allow governments to exchange information that may be relevant to the determination, assessment, enforcement or collection of tax; or to the investigation of tax matters, or the prosecution of criminal tax matters.

The UK already has TIEAs with Bermuda, the Isle of Man, the British Virgin Islands (BVI), and Guernsey: all of whom usually considered as tax havens.

The TIEA means that the UK and Jersey can pass over information they already hold. It also means that a UK Tax Inspector can get the Jersey taxman to actively obtain further information (e.g. witness depositions, copies of original records). This includes information held by or regarding:

Jersey Banks, other financial institutions, and any person;
Nominees and trustees, acting in an agency or fiduciary capacity;
The ownership of Jersey companies, partnerships, collective investment schemes, trusts, foundations and other persons, including:
information on all persons in an ownership chain; and
in the case of collective investment schemes, information on shares,

units and other interests;

in the case of Jersey trusts: information on settlors, trustees, protectors and

beneficiaries;

in the case of Jersey foundations, information on founders, members of the

foundation council and beneficiaries; and

in the case of persons that are not collective investment schemes,

trusts or foundations, equivalent information to the information above.

What does this mean for me?

HMRC have announced two tax amnesties: the New Disclosure Opportunity and the Liechtenstein Disclosure Facility; following the Offshore Disclosure Facility 2007. The UK taxman already has details of thousands of bank accounts registered with Jersey banks by UK residents. Anyone with such an account who does not disclose under the NDO or LDF (Tax Amnesty 2009) could face a Tax Investigation. This TIEA means that the UK tax investigators will be able to obtain information and records from Jersey to help in a tax enquiry. It is likely that these information powers will mainly be used by the specialist tax evasion investigators in Specialist Investigations, Civil Investigation of Fraud or Revenue & Customs Prosecution Office (RCPO).

If you or your clients are subject to a tax investigation you may need specialist help. Or if you have an offshore bank account or other assets in Jersey or other tax havens and you want to know more about The New Disclosure Opportunity or the Liechtenstein Disclosure Facility, call us. Lynam Tax Enquiry Experts have vast experience of dealing with tax enquiries and disclosures involving offshore accounts, assets and structures and in assisting clients to the optimum outcome. Phone Paul Lynam today for a no obligation, confidential discussion on: 0845 643 9997.

New Tax Information Exchange Agreement between UK and Guernsey: 27th November 2009

November 27th, 2009

A new Tax Information Exchange Agreement (TIEA) between the UK and Guernsey came into force 27th November 2009, radically amending the 1952 arrangement. Guernsey includes the islands of Guernsey, Alderney and Herm.

The Financial Secretary to the Treasury, said: “This new tax information exchange agreement represents a significant step in our efforts to counter and prevent tax evasion and avoidance.”

This is the 4th comprehensive TIEA signed by the UK; the others are with Bermuda, the Isle of Man and the British Virgin Islands (BVI).

The TIEA means that the UK and Guernsey can pass over information they already hold. It also means that a UK Tax Inspector can get the Guernsey taxman to actively obtain further information (e.g. witness depositions, copies of original records) . This includes information held by or regarding:

Guernsey Banks, other financial institutions, and any person;
Nominees and trustees, acting in an agency or fiduciary capacity;
The ownership of Guernsey companies, partnerships, collective investment schemes, trusts, foundations and other persons, including:
information on all persons in an ownership chain; and
in the case of collective investment schemes, information on shares,

Units and other interests;

in the case of Guernsey trusts: information on settlors, trustees, protectors and

beneficiaries;

in the case of foundations, information on founders, members of the

foundation council and beneficiaries; and

in the case of persons that are not collective investment schemes,

trusts or foundations, equivalent information to the information above.

What does this mean for me?

HMRC have announced two tax amnesties: the New Disclosure Opportunity and the Liechtenstein Disclosure Facility; following the Offshore Disclosure Facility 2007. The UK taxman already has details of thousands of bank accounts registered with Guernsey banks by UK residents. Anyone with such an account who does not disclose under the 2009 Tax Amnesty – New Disclosure Opportunity could face a tax investigation. This TIEA means that the UK tax investigators will be able to obtain information and records from Guernsey to help in a tax enquiry. It is likely that these information powers will mainly be used by the specialist tax evasion investigators in Specialist Investigations, Civil Investigation of Fraud or Revenue & Customs Prosecution Office (RCPO).

If you or your clients are subject to a tax investigation you may need specialist help. You may be worried about offshore assets or offshore bank accounts or may want more information about the 2009 Tax Amnesty – New Disclosure Opportunity or Liechtenstein Disclosure Facility. Lynam Tax Enquiry Experts have vast experience of dealing with tax enquiries, disclosures and disputes regarding offshore bank accounts, assets and structures, and assisting clients to the optimum outcome. Phone today for a no obligation, confidential discussion. Call Paul Lynam on: 0845 643 9997.

30,000 warning letters to offshore bank account holders

November 26th, 2009

The taxman has sent around 30,000 “generic” warning letters to holders of offshore bank accounts obtained with HMRC’s notices to 300 banks: as the deadline looms for the New Disclosure Opportunity (NDO) tax amnesty.
It is thought that these have gone out to account holders at just a few banks of the 308 that HMRC recently served notices on. These banks (e.g. Citibank) appear to be among the first to pass information over to the taxman. It is likely that many more will follow soon: but possibly after the 30th November deadline for registering with the NDO. HMRC are so far saying that they will not extend the registration deadline: even for people who did not get warning letters from their banks.

Do not delay. For a free, private, no obligation consultation, call Paul Lynam today on 0845 643 9997