The UK disclosures details of new tax amnesty
The UK Revenue and Customs today announced details of a new offshore disclosure opportunity that will allow people with tax irregularities to disclose investments before March 2010, to incur a lighter penalty than if they fail to come forward.
The new offshore disclosure period begins on 1 September and ends on March 12th, next year. It will be available to anyone with tax anomalies associated with offshore bank accounts or investments, according to a press release on the Revenue's website.
Taxpayers will incur a penalty fee of 10%, although anyone who was aware of the first amnesty in 2007 and didn't disclose their offshore accounts will have to pay 20%. Those who ignore the disclosure offer could face paying a penalty of upwards of 30% on their investments, as well as criminal prosecution.
Andrew Watt, managing director of tax disputes and investigations at Alvarez & Marsal Taxand, an independent tax adviser, said the first amnesty in the UK in 2007 was a moderate success, raising £440m.
Watt said: "It is likely that this amnesty will raise upwards of £1bn in tax receipts at a crucial time for boosting the Government’s coffers."
He added: “The NDO provides a good option for companies and individuals with a disclosure to make as they will benefit from a much more favourable penalty. This is the last time companies and individuals will be able to disclose their unpaid tax on such favourable terms."
del.icio.us
Digg
Newsvine
reddit
StumbleUpon