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New Disclosure Opportunity (NDO): Last Offshore Tax Amnesty

July 29th 2009

Offshore account holders have one final opportunity to put their tax affairs in order

The New Disclosure Opportunity (NDO) enables UK taxpayers with offshore accounts to voluntarily disclose previously undeclared income and capital gains to HM Revenue & Customs. 

Risks if Disclosures are not made

If tax, interest and a reduced penalty are paid by 12 March 2010, HMRC are very likely to accept the figures and move on.

If individuals and companies fail to disclose they risk investigation by HMRC. In a few cases individuals might be prosecuted. 

Time is limited in which to take action as the scheme runs from autumn 2009 until 12 March 2010. 

There will be no more chances.

HMRC will “vigorously pursue” all defaulters

  • HMRC possesses a growing amount of data from financial institutions on offshore account holders.
  • HMRC already has details of 400,000 offshore bank accounts from 5 High Street Banks (obtained in 2006/07).
  • In March 2009 it was agreed HMRC would have access to offshore account holders data held by 4 more financial institutions.
  • HMRC is also pursuing another 50 institutions. Plus another 120 institutions are expected to provide data.
  • In 2007 HMRC offered its first Offshore Disclosure Facility, to which 45,000 people responded. HMRC is now pursuing those who did not make a disclosure then and criminal prosecutions may arise.

New Disclosure Opportunity

Under the new opportunity the penalty level will be 10% of the affected tax/NIC for those who had no previous opportunity to disclose.  The penalty will be 20% for those who could have disclosed under the previous opportunity in 2007.   The maximum penalty in normal circumstances is 100%.

How can EDF tax help?

Our Head of Tax Investigations had considerable experience of and success with the 2007 disclosure facility. We can help you now.

It is time for you to act now.  For professional, confidential and specialist advice on your next steps call Iain Macleod at EDF Tax LLP, on mobile 07920 146800, email imacleod@edftax.co.uk or complete our enquiry form.