Tax evaders given 'once in a lifetime' chance to disclose assets

Law firm DLA Piper and LGT, Liechtenstein’s largest investment bank, have teamed up to deliver a series of seminars on making voluntary disclosure of assets held in offshore tax havens under the Liechtenstein Disclosure Facility (LDF).

The LDF enables those with assets held in any offshore jurisdiction to regularise historic liabilities with minimal penalties, a guarantee of no prosecution, and exemption from future ‘naming and shaming' by the Revenue.

A fixed penalty of 10% applies to undeclared tax liabilities dating back ten years, as opposed to the normal twenty, and the option to pay a composite 40% tax rate, which may be less than the actual taxes due.

Considering the fact HMRC has recently stepped up its pursuit of tax evaders and the relatively generous terms of the LDF, HMRC hopes it will raise in excess of £1bn from tens of thousands of taxpayers including UK resident 'non-doms'.

Simon Airey, a partner at DLA Piper, says: "The LDF is effectively a once in a lifetime opportunity and is far more generous than previous voluntary disclosure programmes.

"People need to move quickly though because if HMRC opens an investigation into them before they make a voluntary disclosure, the terms of the LDF will be withdrawn and combined penalties could be as high as 200% in the future. Prosecutions are also likely."

The seminars will explain how the LDF works, allowing taxpayers with offshore holdings to assess their exposure and consider their options.

Seminar Schedule

• Edinburgh - 23 March, 4pm, Rutland Square, Edinburgh, EH1 2AA.
• Birmingham - 24 March, 4pm, Victoria Square House, Victoria Square, Birmingham B2 4DL.
• Manchester - 25 March, 4pm, 101 Barbirolli Square, Bridgewater, Manchester M2 3DL.
• London - 26 March, 8.30am, 3 Noble Street, London EC2V 7EE.

Anybody interested in attending the seminars should contact: Jon Brewer, DLA Piper Email: jon.brewer@dlapiper.com