H M Revenue & Customs (HMR&C) continues in its quest to deal with tax evasion and avoidance and is in negotiation with various overseas territories to reach agreements about the exchange of previously sensitive and confidential information. One of the most significant to date is the agreement with Switzerland, under which Swiss banks and other financial institutions are about to provide details of accounts of anyone with any apparent connection whatsoever with the UK.
Another of HMR&C’s tactics is to offer Disclosure Facilities, meaning that they will take information from an individual and tax any income or gains previously undisclosed accordingly.
The latest Disclosure opportunity relates to the Isle of Man and is now available.
From 6 April 2013 until 30 September 2016, a Disclosure Facility will be available to those people who have held “relevant property” in the Isle of Man between 1 April 1999 and 31 December 2013, and have not correctly returned income from it to the UK HMR&C.
Relevant property is defined as:-
(a) an account with a bank or other financial institution in the Isle of Man;
(b) an annuity contract or cash-value insurance contract issued or maintained by a financial institution in the Isle of Man; or
(c) a company, partnership, foundation, establishment, trust, trust enterprise, issued, formed, founded, settled, incorporated, administered or managed in the Isle of Man.
Disclosure terms are as follows:
· the person makes a full and unprompted Disclosure in respect of all income arising as a result of holding relevant property not previously notified to HMR&C
· sufficient information is provided for the previously undisclosed UK tax to be calculated
· the person’s name, address or registered office, date of birth (or date of incorporation) has to be provided
· the person’s national Insurance Number or any Unique Tax Reference appropriate to the person
· the overall UK tax liability will have to be paid
· if it cannot be paid, evidence of inability to make such a payment is required, together with proposals for payment, with an appropriate payment on account, will be considered
· interest and penalties on the tax will be calculated; there are different categories resulting in penalties of between 10%/40%
A personalised service will be provided by HMR&C, which will have the following features:-
(i) the possibility of an initial anonymous contact by a professional to discuss particular circumstances with a representative from HMR&C on a “no names” basis;
(ii) the possibility of a person or professional adviser having a single point of contact within an HMR&C team;
(iii) HMR&C will give consideration to residence and domicile claims;
(iv) HMR&C will consider estimated offers to settle liability;
(v) offers to pay by instalments over a reasonable period of time will be considered where there is evidence that immediate payment cannot be made;
(vi) as a general rule, HMR&C will provide a Determination of the total liability following Disclosure within a nine month period;
(vii) assistance will be provided by HMR&C in respect of compliance with UK tax law requirements in respect of an accounting period ending before 1 April 2016 or a UK tax year ended 6 April 2016.
It would be naive to believe that the taxman will simply accept what someone making a Disclosure says without in-depth interrogation of the information provided and investigation of the discloser’s wider tax affairs.
The Disclosure opportunity is structured so that it can easily be managed and computer systems used to control data. This system is far more complicated than it seems and the implications of what will happen are far-reaching.
Anybody who believes that they have a Disclosure to make should consult a specialist firm, such as Cobham Murphy Limited who is the best equipped to deal with all aspects of HMR&C investigations and Disclosures.
Cobham Murphy Limited has a team of ex-HMR&C high level Specialist Investigators who have detailed experience of both civil and criminal investigations and who can guide you through the processes on a cost-effective basis.
If you contact Cobham Murphy Limited, a free appraisal of your personal position can be provided.
Please make contact by telephone, fax or e-mail as follows:-
Telephone: 0151 285 3100
Fax: 0151 285 3131
e-mail: [email protected]