HMRC confirm New Disclosure Opportunity details
HM Revenue & Customs (HMRC) has confirmed the details of a new disclosure initiative that will allow people with unpaid taxes linked to offshore accounts or assets to settle their tax liabilities at a favourable penalty rate.
Under the New Disclosure Opportunity (NDO) people who make a complete and accurate disclosure between 1 September 2009 and 12 March 2010 will qualify for a 10% penalty. Those who choose not to take this opportunity and are subsequently found to have undeclared tax liabilities are likely to face a 30% or higher penalty and also run an increased risk of criminal prosecution.
To use the NDO a notification of the intention to disclose must be made to HMRC between 1 September and 30 November 2009. Full disclosures must be made by 31 January 2010 or, if disclosing electronically, 12 March 2010. A penalty rate of 10% will apply to those who were not written to by HMRC under the Offshore Disclosure Facility in 2007. Those to whom HMRC wrote in 2007 offering the 10% rate but did not complete the ODF procedure will face a penalty of 20%. Anyone with unpaid tax who does not come forward will face penalties of between 30% and 100% and will run a risk of criminal prosecution.
Any person who may have unpaid tax liabilities, or is unsure if their tax affairs are up to date, should take professional advice as soon as possible. Please contact us for more information.