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NDO - Deadline Extended to 4 January 2010

01/12/2009
HMRC announced at the end of last week that the deadline for registration under the New Disclosure Opportunity (NDO) would be extended to 4 January 2010. HMRC also indicated that it is currently receiving information from over 300 banks under third party information notices issued earlier this year. Originally taxpayers had until 30 November to register
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Do you understand IR35?

09/10/2009
Two recently published articles discussed the current level of understanding surrounding IR35. The first, an article by AccountingWeb, revealed details of a survey* which had assessed the level of knowledge of IR35 among high street accountants to be ‘very vague’ and stated that ‘many accountants lack detailed knowledge about IR35
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IRS extension of deadline for disclosing offshore accounts

23/09/2009
The US Internal Revenue Service recently announced an extension of the deadline for special voluntary disclosures by taxpayers with unreported income from hidden offshore accounts. These taxpayers now have until 15 October 2009. Under special provisions issued in March, taxpayers with these hidden accounts originally had until 23 September 2009 to come
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Queen's bankers involved in tax dodge

22/09/2009
Coutts, often referred to as the "Queen's Bank" by virtue of it being reputed to be the bankers to the British Royal Family has been caught operating an unlawful £1 billion tax avoidance scheme for some of its wealthiest clients. In brief, the scam centred on a Swiss-based investment trust (Castle Trust) that made a deliberate loss.
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Comparison NDO (New Disclosure Opportunity) and LDF (Liechtenstein Disclosure Facility)

15/09/2009
There has been considerable press coverage recently about two schemes which allow UK tax payers opportunities to disclose previously undeclared income to UK authorities. Both schemes offer an opportunity to settle unpaid tax on undeclared income while offering favourable penalty rates for overdue tax. Anyone who may be concerned by either of these opportunities
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NDO- Message is clear to those evading tax

31/08/2009
The new Disclosure Opportunity (NDO) is well under way, and businesses, individuals and tax advisers will be contemplating how best to proceed. (For detailed information please read our comprehensive guide to the HMRC New Disclosure Opportunity .) Further to the disclosure opportunity, HMRC recently released a press statement indicating that they had
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HMRC- Focus on Recruitment Agencies

19/08/2009
Revenue & Customs have issued a warning to recruitment agencies that it will be taking sterner measures against employers who are abusing tax concessions for temporary workers. Ministers have become increasingly aware of the growth of schemes that convert an element of a worker’s pay into tax-free expenses. In some cases, the employer takes
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UK: HMRC to revise guidance on "Ordinarily resident"

17/08/2009
On August 14th, 2009, HMRC declared their intention to revise guidance on ordinary residence in the UK. The new intended guidance states that: You will become ordinarily resident in a tax year after your year of arrival if: you have been in the UK for three years from the date of your arrival, even though you did not originally intend to stay and have
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Italy legalises tax amnesty

14/08/2009
On 3 August 2009, the Italian Anti-crisis Decree ( tax amnesty) was converted into Law Decree No. 103 . The key points of the tax amnesty measures provided in the Law are summarised: With effect from15 September 2009, Italian taxpayers that are considered to be financially resident in Italy will be allowed to legitimately transfer/declare funds and
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Liechtenstein- agreement signed with UK

11/08/2009
Liechtenstein is giving up its secrets regarding bank accounts held in the principality. In 2002, the Organisation for Economic Co-operation and Development named Liechtenstein as one of seven “unco-operative tax havens”. In recent months, the Alpine principality has agreed to accept OECD tax transparency standards and started negotiating
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HMRC confirm New Disclosure Opportunity details

05/08/2009
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
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Professional advisors must report on unpaid tax

03/08/2009
The UK Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007 require a report to be made to the police if a person knows or suspects that a client or any other person is engaged in money laundering or using or possessing the proceeds of crime. An offence is committed when a person acquires, uses or has possession of property which he
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HMRC 'New Disclosure Opportunity'

09/07/2009
HM Revenue and Customs (HMRC) has announced details of the new offshore bank account disclosure scheme, which is due to commence in September 2009. Following a meeting with tax practitioners, HMRC has confirmed that the penalty for full disclosure under the scheme, of income connected to a hitherto undeclared offshore account, will be 10%. However,
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US Pressure increasing on UBS

04/07/2009
In escalating efforts by the US government to combat tax evasion, officials will advance their campaign to force UBS to release the names of thousands of American customers holding offshore accounts with the Swiss bank. The Department of Justice, in a filing with a Miami district court, said UBS should be ordered “to comply in full’’
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Swiss government steps into UBS v US battle

30/06/2009
The Swiss government launched into the legal battle between UBS and the US authorities by saying it would forbid the bank from handing over confidential client information if a crucial court case next week required it. Bern warned it might go as far as confiscating the data, should a US court in Miami rule the bank was obliged to transfer the client
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Swiss at war over banking secrecy

30/06/2009
One of the managing partners of a private bank in Geneva, Mirabaud says that there is a feeling within the banking community that an economic war has broken out between Switzerland and the rest of the world following the measures to try and breakdown Swiss banking secrecy. In rare public comments, the Swiss private banker was quoted as saying: “There
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The changing face of Swiss banking

30/06/2009
In a world of greater transparency, Switzerland’s private bankers are beginning to accept that their traditional business model of managing the undeclared wealth of foreigners cannot be sustained. There has been increasing international pressure to change following the damaging US legal battle with the largest Swiss bank, UBS. Swiss private bankers
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Further crackdown on tax havens

30/06/2009
Finance ministers are meeting this week in Berlin to review the international crackdown on tax havens. As a key step to tackling the issues, Stephen Timms, financial secretary to the UK Treasury, is pushing for “country-by-country” financial reporting for all multinationals. The Treasury believes that this additional reporting requirement
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Isle of Man announces greater transparency on tax

25/06/2009
Pressure on investors who deposit money in offshore accounts has stepped up a further notch with the Isle of Man (IOM) independently announcing plans for the automatic exchange of tax information. Tougher disclosure rules may soon be forced on offshore centres by the European Union and consequently this announcement by the IOM is seen as an attempt
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Constitutional Crisis in Caribbean Tax Haven

24/06/2009
A property magnate embroiled in a corruption inquiry that has plunged a Caribbean offshore tax haven into a constitutional crisis is leading a legal challenge to curb publication of a report on the affair. Mario Hoffman, developer of the tiny paradise island of Salt Cay, is due to go to the Turks and Caicos Islands’ supreme court on Thursday 4th
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Hedge Funds- new EU directive

10/06/2009
Some of Britain’s biggest hedge funds have warned the UK Treasury they will be forced to leave the country unless a draft European directive is radically changed. The move follows last minute changes to the draft directive on alternative investment fund managers to include a requirement for the European Commission to set a limit on borrowing.
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No more uncooperative tax havens

08/06/2009
In a report issued in 2000, the OECD identified a number of countries as tax havens. Between 2000 and April 2002, 31 of those countries made formal commitments to implement the OECD’s standards of transparency and exchange of information. There remained seven (Andorra, Liechtenstein, Liberia, Monaco, The Marshall Islands, Nauru and Vanuatu) who
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Furnished Holiday Homes - New Rules

03/06/2009
Furnished holiday homes - good and bad news The commercial letting of furnished holiday homes situated in the UK is treated as a deemed trade if the conditions of the Furnished Holiday Lettings (FHL) rules are met. The main conditions are that the property is available for holiday letting to the public on a commercial basis for at least 140 days –
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Crackdown on worldwide tax dodgers

31/05/2009
The net is closing on tax avoidance and evasion by wealthy individuals in a recently launched worldwide crackdown. At least 30 countries have declared their intention to work together in the joint pursuit of those hiding money in offshore accounts. The tax authorities said that there are ever greater opportunities for aggressive tax planning available
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On the trail of hidden assets- Liechtenstein

20/05/2009
The Liechtenstein Government intends to sign up to the Organisation for Economic Co-operation & Development (OECD) for greater standards of transparency and exchange of information. This is a move welcomed by HMRC who have spent many years negotiating with colleagues in the OECD and more recently with the UK embassy in Berne and the Liechtenstein
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UK Businesses relocate to low tax Switzerland

06/05/2009
Britain’s reputation as an attractive location for multinationals took another dent this week following Informa’s decision to move its tax base out of Britain. The decision by the world’s largest media provider re-ignited the debate over the taxation of profits earned overseas. Unfortunately for the Treasury, they are just one of many
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(HMRC) Tax deadline calendar available for smes

30/04/2009
(HMRC) Tax deadline calendar available for (smes) A new tax deadline calendar for 2009/10 has been produced by HM Revenue & Customs (HMRC) especially for Small and Medium Enterprises (SMES). Mike Purvis, HMRC's Assistant Director for Small and Medium Enterprises, said: "A number of smaller business customers have told us it would be useful
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New measures to restrict tax refund claims

28/04/2009
Revenue & Customs are to introduce measures, outlined in a new finance bill, to combat the series of multibillion refund claims that have plagued them during recent years. From April 2010, taxpayers will no longer be able to sue Revenue & Customs in the High Court to reclaim overpaid corporation, income and capital gains tax. In the future all
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German government agrees Anti Tax Avoidance measures

24/04/2009
After many weeks of discussions the German cabinet has finally agreed draft legislation against tax evaders which was presented on 22 April 2009 The new draft legislation will require individuals and businesses which are above a certain size to keep detailed records, ready for immediate audit by the tax authorities, of all dealings in the so-called
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HMRC- New UK Offshore Amnesty

22/04/2009
HMRC Releases Details Of New UK Offshore Amnesty On 22 April 2009, the Chancellor of the Exchequer, Mr Alistair Darling delivered the Budget for 2009-10. He announced that a new disclosure opportunity (NDO) will be afforded for offshore account holders with unpaid tax or duties. HM Revenue and Customs (HMRC) has announced initial details of the new
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First US citizen arrested over UBS account

06/04/2009
U.S. authorities have arrested and charged an accountant in Florida in the first tax evasion prosecution of American clients of Swiss bank UBS The US Justice Department claimed that Steven Michael Rubinstein was accused of filing at least one false tax return which failed to disclose he had an account with UBS. Rubinstein, who holds both US and South
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Liechtenstein moves towards greater tax transparency

03/04/2009
Liechtenstein- The path to transparency? In March this year, the HMRC welcomed important first steps by Liechtenstein on the path to tax transparency. The announcement by the Liechtenstein Government of its intention to sign up to the Organisation for Economic Co-operation & Development (OECD) standards of transparency and exchange of information
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HMRC - New compliance checks

11/03/2009
HM Revenue & Customs (HMRC) warned today that charities need to get ready for the new aligned compliance checks framework that comes into effect next month. With new information and inspection powers, record keeping requirements, time limits for tax assessments and claims and the accompanying safeguards, charities need to make sure that they know
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UK-Jersey tax agreement

10/03/2009
The UK Government signs up to a Jersey tax agreement (HMRC notice released on 10 March 2009) Along with other Crown Dependencies and Overseas Territories, Jersey has agreed to join as a signatory to a Tax Information Exchange Agreement (TIEA) with the UK. The use of TIEAs forms part of the HM Revenue & Customs (HMRC) drive against offshore tax avoidance
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US lawsuit filed against UBS over hidden accounts

28/02/2009
A US government lawsuit filed against Switzerland’s biggest bank, UBS, alleged that as many as 52,000 American customers hid Swiss bank accounts from the US authorities in violation of tax laws. The Department of Justice filed the suit, more commonly known as the ‘John Doe summons’ to force UBS to disclose the holders of accounts with
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Tax clampdown on Expat flexible pensions

27/02/2009
Thousands of Britons retiring abroad and using flexible offshore pension schemes to exploit tax loopholes face the risk of a hefty tax bill. Offshore pensions, known as Qualifying Recognised Overseas Pension Schemes (QROPS), have generated a lot of interest among Britons leaving for foreign shores since they were first introduced in April 2006. Some
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Swiss banks resist change

12/02/2009
In parliament this week, Britain's prime minister, Gordon Brown raised the issue of Switzerland and its financial institutions and the perceived opinion that they are collecting billions of dollars a year out of the pockets of others through legalised tax avoidance. It was largely seen as an attempt by Mr Brown to assure critics that he was doing something
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CEO of Deutsche Post convicted of tax evasion

31/01/2009
The former chief executive of Deutsche Post AG, Klaus Zumwinkel, was convicted of tax evasion by a German court. He was sentenced to a two-year suspended sentence and fined €1 million. Mr. Zumwinkel, 65, admitted that he had evaded nearly €1 million ($1.3 million) in taxes by hiding money away in the tax haven, Liechtenstein. One of Germany
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Summary of Fight Against International Tax Evasion Conference, Paris (21/10/08)

31/10/2008
Background Following rulings against a number of major financial institutions, HMRC obtained details of approximately 400,000 offshore bank accounts belonging to people with UK addresses. It is estimated that the 400,000 accounts relate to around 260,000 individuals and that up to 25% of these individuals had not included income and/or interest from
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Conclusions of Paris Conference on International Tax Evasion

21/10/2008
Conference on the fight against international tax evasion and avoidance Improving transparency and stepping up exchange of information in tax matters Paris – 21 October 2008 Summary of Conclusions 1. On the initiative of Mr Eric Woerth, Minister for the Budget, Public Accounts and the Civil Service of France, and Mr Peer Steinbrück, Minister
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Update on IR35 and 'reasonable care'

01/10/2008
HMRC have introduced a new tax penalty regime relating to IR35 which may force IT contractors to obtain an expert review of every contract and assignment. As IR35 concerns “relevant engagements”, contractors will need to satisfy the HMRC that they took “reasonable care” with every placement in order to avoid a penalty. No definition
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