08.10.2009

HMRC launch new disclosure opportunity, the Government sign a tax information agreement with Liechtenstein and the Finance Act 2009 puts new responsibility on senior accounting officers.

NEW DISCLOSURE OPPORTUNITY
LIECHTENSTEIN - A BRAVE NEW WORLD
SENIOR ACCOUNTING OFFICERS - LARGE COMPANIES

 

 

NEW DISCLOSURE OPPORTUNITY
HMRC has launched the New Disclosure Opportunity, under which those with accounts and assets offshore who have not declared the income arising can come forward and bring their tax affairs up to date. There is a concession regarding penalties, which will limit them to 10% of the tax declared, but HMRC has been keen to warn that this is the last opportunity for UK taxpayers to get their affairs in order without paying very significant penalties. Those who wish to take part in the scheme will need to notify HMRC by 30 November in order to participate.

LIECHTENSTEIN - A BRAVE NEW WORLD
A Tax Information Exchange Agreement has been signed between the Governments of the UK and Liechtenstein. This provides for full exchange of information about account holders in Liechtenstein who are UK resident. As a result a five year facility has been launched to allow account holders to come forward and bring their tax affairs up to date. The five year programme will involve the banks and financial intermediaries in Liechtenstein contacting all of their UK account holders and requesting evidence that they have declared their accounts to the UK tax authorities. If the account holders are not able to demonstrate this within a specified period the account will be closed. HMRC have a special team dealing with the new Liechtenstein Disclosure Facility, and there are advantageous penalty and other tax arrangements which will apply to those seeking to put their affairs in order.

SENIOR ACCOUNTING OFFICERS - LARGE COMPANIES
The Finance Act 2009 includes a responsibility for senior accounting officers to establish appropriate tax accounting arrangements and certify annually that they are in place and adequate. The plan was originally to include a wide range of companies, but during the debate on the Finance Bill, HMRC agreed to limit this to very large companies only. However, as the financial test applies on a group basis, subsidiaries of very large groups will also be affected. Companies and groups affected will have either turnover of more than £200 million or assets of more than £2 billion. There is already extensive guidance on the HMRC website of what is needed and how to comply.