Time is running out for disclosure facility
On 17 April HM Revenue and Customs announced the launch of the Offshore Disclosure Facility which enables those with undeclared tax liabilities to come clean and tell the Revenue all about it. You neec to calculate the tax, interest and a fixed 10% penalty and pay it over to the Revenue. This has been labelled a “Tax Amnesty” but it is nothing of the sort. The incentive for using this facility is the fixed 10% penalty. HMRC have made it known that outside this facility they will be looking for a minimum 30% penalty and possibly the maximum 100%.
It should be noted that although the facility refers to disclosures with an offshore element it is possible for any disclosure to attract the same terms. This applies to individual, trustees, executors as well as companies and employers.
The vital date to remember is 22 June 2007. If by midnight on that day HMRC have not received a “notice of intention to disclose” then the terms of the facility will not be available. There are just over three weeks to go. If you think you may have something to declare take professional advice as soon as possible.
Date: 4th June, 2007
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