Tax & Accounting News

Tax haven set to help out in offshore account crackdown

08/04/2009

Liechtenstein is set to co-operate more fully with foreign tax authorities in a move that will help to ease HM Revenue & Customs new crackdown on the holders of offshore accounts.

Media reports suggest that Liechtenstein’s government will hold talks with HM Revenue & Customs (HMRC) early this month as part of moves to encourage UK investors holding assets in Liechtenstein banks to voluntarily disclose untaxed assets.

The reports say HMRC will offer account-holders limited penalties as part of an initiative designed to help them put their tax affairs in order.

Liechtenstein’s banks, which are thought to hold up to £3 billion of UK investors’ money, would also be asked to close accounts of customers who fail to act on HMRC’s offer.
 
The move forms part of a new crackdown HMRC is planning on offshore accounts. The government hopes the exercise will repeat the success of its first initiative, which netted £400 million in tax that would otherwise have gone unpaid.

It is thought HMRC will be seeking penalties of 30 per cent of tax owed from account-holders declaring offshore income during the 2009 initiative.

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