HMRC Investigations

Where now for the Tax Disclosures.

HM Revenue and Customs (HMRC) Disclosure Opportunities

The deadline has now passed for making a disclosure under the Tax Health Plan, which enabled medical professionals to make a disclosure of undisclosed income and gains. This follows on from two other initiatives for those with undisclosed foreign income.

For those that qualify; the Liechtenstein Disclosure facility is available until 31 March 2015.

Those that did not take advantage of the earlier initiatives will face harsher treatment, in the event of discovery, from HMRC with significantly increased penalties. HMRC have accessed the offshore account details of up to 300 institutions and will no doubt be trawling through this information over the coming months and years. For those with irregularities in their tax affairs the best method of mitigating penalties and minimizing the risk of prosecution would be to make an unsolicited approach to HMRC and assist them to the best of your abilities to calculate the amount falling due.

For those with undisclosed foreign income an extra incentive, to make a full disclosure, is the new penalty regime for failure to disclose offshore income. Currently, the maximum penalty that HMRC can issue is 100% of the tax due on undisclosed income. From 6 April 2011 the maximum penalty will be 200% for income arising in territories where UK has no exchange of information agreement and 150% for those territories where an exchange of information is not automatic but available on request.

If you are would like to discuss any of the issues above please feel free to contact Stuart Shaw on 01622 758257 or at stuart@loucas.org.uk.