Click here to read the details of the Government’s latest tax amnesty, as summarised by law firm Withers, and download their full briefing.
Here are the major points of the Government’s latest tax amnesty, as summarised by law firm Withers. Click here to download their full briefing.
Scope of the NDO
The NDO offers taxpayers the opportunity to make full disclosure and payment of any undeclared taxes, interest and a fixed penalty on the unpaid taxes. HMRC has stated that it will be the last opportunity of its kind.
Terms of the NDO
A penalty of 10% will be applied where the taxpayer did not have an opportunity to disclose under the previous disclosure facility in 2007. Those taxpayers who had the opportunity to disclose previously (i.e. those taxpayers to whom HMRC wrote in 2007 offering the 10% rate, but who did not complete the disclosure procedure) will suffer a penalty of 20%.
HMRC states that any taxpayer who does not make use of the NDO will face a penalty of 30% (rising to 100%), and/or possibly criminal prosecution. Furthermore, in its 2009 Budget, the UK Government announced plans to publish (on the internet) a list of taxpayers who have deliberately understated their tax liability and have not taken advantage of an opportunity to make a voluntary disclosure.
The NDO will run from 1 September 2009 to 31 January 2010 for taxpayers submitting paper disclosures and from 1 October 2009 to 12 March 2010 for taxpayers submitting disclosures online. Those wishing to make paper disclosures must notify HMRC of their intention to do so between 1 September 2009 and 30 November 2009. Those wishing to submit disclosures online must notify HMRC of their intention to do so between 1 October 2009 and 30 November 2009.
For further information, please speak to your primary contact at Withers, or to:
Samantha Morgan (London) firstname.lastname@example.org +44 (0)20 7597 6116
Jay Krause (London) email@example.com +44 (0)20 7597 6350
Justine Markovitz (Geneva) firstname.lastname@example.org +41 (0)22 593 7711
Samantha Bradley (Hong Kong) email@example.com +852 3711 1610