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.
The Right Honourable Stephen Timms MP, Financial Secretary to the
Treasury said:
“I would urge anyone with offshore accounts holding untaxed
income or gains to take advantage of this simple and
straightforward scheme.
“Most offshore investors already pay the tax that the law
requires and it’s only fair that everyone respects the rules.
“Tax evasion is not a victimless crime. It deprives our public
services of vital funding and places an unfair burden on the
honest majority of taxpayers.”
Dave Hartnett, HMRC Permanent Secretary for Tax, said:
“I know there are people who regret not taking advantage of our
Offshore Disclosure Facility (ODF) in 2007 which focused primarily
on the customers of five large banks. Now everybody who has not
paid the tax they should in relation to offshore accounts or
assets has this New Disclosure Opportunity to pay what they owe
with penalties on more favourable terms than normal.
“The procedure is simple and straightforward. Customers will be
able to contact us on paper or through a dedicated area of our website.
“This will be the last opportunity of its kind.”
Details
1. To use the NDO a notification of the intention to disclose
must be made to HMRC between 1 September and 30 November 2009.
2. Those notifying on paper can do so from 1 September to 30 November.
3. Those notifying electronically can do so from 1 October to 30
November.
4. Disclosures can then be made:
- on paper from 1 September 2009 to 31 January 2010
- electronically from 1 October 2009 to 12 March 2010.
5. The penalty rate of 10% will apply to those who were not
written to by HMRC under the ODF in 2007.
6. Those to whom HMRC wrote to in 2007 offering the 10% rate but
did not complete the ODF procedure and now want to disclose will
have an opportunity to do so with unpaid tax attracting a penalty
of 20% which is more favourable than normal whilst demonstrating
that special rates once declined are unlikely to be repeated.
7. The ODF ran from April to November 2007.
8. Once this disclosure window closes on 12 March 2010, those
taxpayers who have not come forward but are found to have unpaid
tax liabilities will face penalties of at least 30% rising to 100%
of the tax evaded. They also run a risk of criminal prosecution.
Issued by HM Revenue & Customs Press
Office
Press enquiries only please contact:
Contacts:
Patrick O'Brien
Phone: 020 7147 2318
patrick.obrien@hmrc.gsi.gov.uk
Andrew Bennett
Phone: 020 7147 0051
andrew.bennett3@hmrc.gsi.gov.uk
Darlene Coker
Phone: 020 7147 2333
darlene.coker@hmrc.gsi.gov.uk
Sara Gaines
Phone: 020 7147 0394
sara.gaines@hmrc.gsi.gov.uk
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk