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What is the NDO?How does the NDO work?
Who can use the NDO?
When can the NDO be used?
What should I do now?
The fine print
Can I disclose online and claim 10% penalty rate even though I knew about the ODF?What happens if I choose not to disclose my undeclared liabilities?
Can I disclose if my liabilities are not connected to an offshore account or asset?
Does the NDO apply to accounts in Liechtenstein?
Will HMRC guarantee not to conduct a criminal investigation into my disclosure?
HMRC NDO
UK HMRC has now confirmed the details of their New Disclosure Opportunity (NDO) that will allow people with unpaid taxes linked to offshore accounts or assets to settle their tax liabilities at a favourable penalty rate.
HMRC have been seeking legal authority to force several hundred banks with UK customers to hand over records of their offshore customers. Before contacting the banks, HMRC is offering reduced penalties for the voluntary full disclosure of income connected to a hitherto undeclared offshore account - but they are warning that this is the last chance to do so. Anyone with undisclosed income who has not made a full voluntary disclosure before the March 2010 deadline will face criminal prosecution and harsh penalties. In order to qualify, offshore account holders must notify HMRC of their intention to make a disclosure, in some cases as early as Autumn 2009.
Named the New Disclosure Opportunity (NDO), this scheme follows a similar facility in 2007 which collected circa GBP 400 million in additional tax. However, the government has warned that this will be the last chance for those with unpaid tax connected to an offshore account to come forward and escape harsh penalties and possible criminal prosecution. The government expects the NDO to raise about GBP 2 billion in extra tax.
Those 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.
Dave Hartnett, HMRC Permanent Secretary for Tax, has clearly stated that this will be the last opportunity of its kind and steps are already being taken to start a legal process to force 250 banks to provide details of all customers with offshore accounts. Anyone found to have undeclared accounts will be facing a full tax investigation.
Any person who may have unpaid tax liabilities, or is unsure if their tax affairs are up to date, should consider taking professional tax advice as soon as possible. AegisTax has a track record of obtaining the best possible results for clients in such situations. Contact us for more information or for a confidential, no obligation assessment.
