Business and Other Briefings
HMRC: Two ground breaking tax agreements between the Government of Liechtenstein and the UK signed last week will result in off shore investments in Liechtenstein made by UK residents being properly taxed & represent the commitment of Liechtenstein to increased tax transparency.
A new Tax Information Exchange Agreement (TIEA) will enable the UK and Liechtenstein to exchange information to ensure the right tax is paid in each country in future. It will allow penalties on unpaid tax to be capped at 10% of tax evaded over the last 10 years providing the taxpayer tells HM Revenue & Customs (HMRC) everything. Those who fail to make a full disclosure by the end of the programme will find their accounts in Liechtenstein closed down and face penalties of up to 100% when HMRC catches up with them.
The Liechtenstein Disclosure Facility (LDF) runs from 1 September 2009 to 31 March 2015. The Liechtenstein Government will introduce new laws to ensure audit of the process.
HMRC: The Tax Chamber of the First-tier Tribunal have today ordered over 300 banks to give details to HM Revenue & Customs (HMRC) about their customers who hold offshore accounts. HMRC can now issue the information notices to banks ahead of the New Disclosure Opportunity (NDO).
The NDO will allow people with unpaid taxes linked to offshore accounts or assets to settle their tax liabilities at a favourable penalty rate. Under the rules of the NDO, people who make a complete & accurate disclosure 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.
FSA: The Financial Services Authority (FSA) has introduced a new code that will require large banks, building societies & broker dealers in the UK to establish, implement & maintain remuneration policies consistent with effective risk management.
The new code is designed to achieve two objectives:
* firstly, that boards focus more closely on ensuring that the total amount distributed by a firm is consistent with good risk management & sustainability
* secondly that individual compensation practices provide the right incentives
Eight principles have also been added to the FSA’s handbook to ensure firms understand how the FSA will assess compliance. The code claims to make it clear that it is not expected that firms will enter into contracts with individuals which provide guaranteed bonuses for more than 1 year. It is also expected that for senior employees two-thirds of bonuses will be spread over three years.
Firms are expected to provide the FSA with a remuneration policy statement by the end of October 2009. This will have to be signed off by remuneration committees and will enable the FSA to check compliance with the code. Non-compliant firms could face enforcement action or, ultimately, be forced to hold additional capital should they pursue risky processes.
CLG: Many high streets in areas of high deprivation are seeing empty shops boarded up because of the downturn, which is impacting on consumer and business confidence. The Government wants to help ensure town centres remain vibrant places for people to meet & shop and is providing £3m to help 57 of the hardest hit areas find creative ways to use their empty shops and re-open them as facilities for communities.
Each council will receive a grant of more than £50,000 to use as they see fit on ideas to boost town centres and transform empty shops into something useful such as a meeting place, a learning centre or a even a showroom for local artists.
The Government's Looking after our town centres guide was welcomed by the Association of Town Centre Management for giving councils tips & ideas for combating the effects of the downturn. It has already been downloaded over 9,000 times in only a few months. It sets out how councils can encourage activities like traditional retail & farmers markets, local festivals or other entertainments that can bring added attractions to communities and high streets during the downturn.
Press release ~ Looking after our Town Centres guide ~ Planning Policy Statement: Planning for Town Centres ~ Association of Town Centre Management ~ Business Link – Help with Business Rates ~ CLG – Business Rates ~ Business Improvement Districts (BIDs)
This brief sets out HMRC's view on the Inheritance Tax position in relation to contributions to an Employee Benefit Trust.
A new VAT Information Sheet 14/09 and Revenue & Customs brief 51/09 are being published to replace the incorrect VAT Information sheet 12/09 and Revenue & Customs Brief 44/09 which are now withdrawn.
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