BENEFITS OF THE LIECHTENSTEIN DISCLOSURE FACILITY

• The LDF is not limited to taxpayers with accounts or assets in Liechtenstein. Provided a Liechtenstein connection is established (we can help set this up), the LDF can be used as an umbrella for the disclosure of any tax liability connected with any offshore asset, including:-
  • Switzerland, Jersey, Antigua and Barbuda, Barbados, British Virgin Islands, Costa Rica, San Marino, Seychelles, Turks and Caicos Islands and Uruguay [More countries sign tax share agreement]
• The maximum penalty is fixed at 10% of the outstanding tax plus interest
• Tax, interest and penalty under the LDF may be much lower than the withholding tax arrangements under the UK-Switzerland agreement
• HMRC will only look back to accounting periods or tax years commencing on or after 1 April 1999 and will not seek to recover unpaid tax from earlier periods
• In cases of ‘innocent error’, liability to UK tax will be limited to include only the previous six tax years at the time of disclosure
• HMRC will give assurances it will not pursue criminal prosecution
• Beneficial for inherited assets that were not originally included in the deceased’s estate

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