The tax man has finally started to provide some details of how the 2009 Tax Amnesty – the New Disclosure Opportunity will work in practice. The NDO will enable taxpayers to disclose previously undeclared income and capital gains to HMRC, as long as one of the sources is an offshore bank account.
The New Disclosure Opportunity will run from the autumn 2009 until March 2010. It will give the offshore account holders one final disclosure opportunity to put their UK tax affairs in order.
Where a taxpayer’s offshore bank account was not with one of the 5 High Street name banks which triggered the first Tax Amnesty (The Offshore Disclosure Facility) then a full voluntary disclosure under The New Disclosure Opportunity will secure a reduced penalty of 10% of the under declared tax. Anyone holding an account with one of those 5 banks however will face higher penalties (said to be about 20% for full voluntary disclosures).
HMRC is currently trying to get details of offshore bank accounts and assets from hundreds of financial institutions.
The tax man says he will aim to make the NDO process as simple and straightforward as possible; although accepting that offshore structures can be very complex on occasions. The Revenue is also warning that there will not be another tax amnesty. Anyone who does not step up for a drink at the last chance saloon could face significantly higher penalties (over 50% plus naming and shaming) or even risk criminal prosecution.
The tax men say they have well developed plans to: risk assess all information received; identify all offshore account holders tax resident in the UK who don’t disclose through the NDO; and to “relentlessly pursue” all defaulters.
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 New Disclosure Opportunity may benefit you: then Lynam Tax Enquiry Experts can help. Call today for a confidential, discreet discussion with our experienced Tax Experts.
Call Paul Lynam now on 0845 643 9997