AS PREDICTED, the UK Government has announced a second offshore tax ‘amnesty’, which HMRC have described as ‘the last opportunity of its kind’.
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.
‘This has been anticipated for some time but we do believe that it provides an excellent opportunity to voluntarily disclose details of unpaid tax connected to offshore accounts or structures,’ said KPMG Channel Islands’ Tax Partner Jason Laity.
‘It is important to recognise that it is not just UK residents with offshore bank accounts who can benefit from the NDO – in fact, any person with a UK tax liability connected to an offshore structure can use it. In addition, it is not solely aimed at those who have been deliberately evading tax. Very often, due to the complexity of the rules, they may not be aware of the undeclared liabilities and become very concerned once the matter is brought to their attention. This is an ideal opportunity to deal with those issues,’ said Mr Laity
Mr Laity added: ‘HMRC now has so much information that the NDO is logistically the best way to recover unpaid revenue as it puts the emphasis back on the taxpayer. Anyone making a disclosure under the NDO needs to have notified HMRC of their intention to do so by 30th November. The next few months are therefore a key time for any undeclared tax liabilities to be identified.’
‘KPMG gained significant experience in handling disclosures under the last ‘amnesty’ and we hope that the seminars will give service providers in the Channel Islands the opportunity to share our expertise, if needed,’ said Mr Laity.
Issued by Katrina Bray at Image PR on 723456 or email firstname.lastname@example.org
Note to Editors
About KPMG Channel Islands
KPMG Channel Islands Limited is the CI member firm of KPMG International. It has offices in Guernsey and Jersey employing more than 240 staff. It is a leading auditor of investment funds in the Channel Islands as detailed in the annual Reuters Fitzrovia survey and has large market shares in the banking and insurance sectors (no independent market share figures available). It also audits many local businesses, including the States owned trading companies.
About KPMG International
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 144 countries and have 137,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. Each KPMG firm is a legally distinct and separate entity and describes itself as such.