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It’s balderdash to claim the LDF is a failure says HMRC

It’s balderdash to claim the LDF is a failure says HMRC

HMRC have fought back at claims that the Liechtenstein Disclose Facility has been a failure.

Between the first of September last year and the end of March 2010, only 419 taxpayers signed up for the LDF. The New Disclosure Opportunity, on the other hand, was taken up by 10,000 taxpayers, according to McGrigors.

The LDF has more favourable terms than the NDO. Taxpayers only need to own up to undeclared offshore tax liabilities going back 10 years as opposed to the 20 year requirement for the NDO.

The tax and law firm said that this was another example of the poor responses to disclosure initiatives from HMRC. The firm pointed out that another tax amnesty for medical professionals has been taken up by only about 1,500 of the 30,000 who are thought to have undisclosed tax liabilities.

McGrigors believe the take up rate for these disclosures is hampered by a lack of advertising or promotion by the Revenue. They say that professional advisers are given the responsibility of spreading the word rather than the taxman taking the initiative.

The Revenue says it is very pleased with the amount of individuals who have voluntarily registered for the LDF so far. The number is increasing steadily, and unlike other short term disclosures, the LDF is available until 2015.

The LDF legislation doesn’t come into effect in the principality until the first of September, so it’s ridiculous to start drawing conclusions already. LDF is going really well and its “balderdash” to suggest differently, an HMRC spokesperson said.

© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: Get thee to a nunnery by kevindooley

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