HMRC actively encourage individuals to regulate their tax affairs if they have investments or assets in British Crown dependencies or overseas locations. In doing so individuals are able to negotiate favourable terms. This can only work however if you have the right information available which can only be accessed by visiting a specialist tax investigation firm. Our experienced team of tax advisors will conduct a risk assessment and then notify you of potential problems and liabilities in relation to taxation. Once your disclosure has been made, Churchill Tax Investigation will enter into the necessary negotiations to minimise the penalties and tax that you must pay.
At the present time there are several offshore disclosure facilities for people who want to address the tax affairs of their business. It is important to understand that if HMRC issue a Code of Practice 9 to investigate your affairs prior to a disclosure being made, it will be difficult to use the Worldwide Disclosure Facility. As a result, the individual or business could face a 200% penalty and prosecution if they do not cooperate.
Any UK resident who holds an offshore account in their name will usually receive a letter from HMRC. All members of the G8 are committed to tackling tax evasion and they regularly share information in an attempt to reduce and where possible eliminate tax evasion. Several Memorandums of Understanding (MoU) have been signed with these countries to enable the financial details of UK residents to be shared with HMRC. The terms of the Memorandum of Understanding specify certain terms and conditions which enable residents of the UK who have not yet declared income, gains or assets to regularise their affairs, but on favourable terms. In the past there have been several disclosure facilities which are no longer available. These included:
Liechtenstein Disclosure Facility (LDF)
Cayman Islands Tax Disclosure
Guernsey Disclosure Facility (GDF)
UK and Swiss tax agreements
Isle of Man Disclosure Facility (IoMDF)
The Liechtenstein Disclosure Facility (LDF) was one of the most favourable route ever offered by HMRC with a penalty of only 10% anddisclosure period limited to only ten years. Unfortunately this facility was withdrawn in September 2016. At present only the Worldwide disclosure Facility is available to make any voluntary disclosures involving offshore income.
HMRC are within their rights to launch criminal investigations if they have reason to believe that an individual has committed tax fraud. An important factor in making this decision is whether the individual has made a full, unprompted disclosure of amounts that have either been reclaimed incorrectly or not reported at all.
Our team can help in multiple ways including:
Communicate with HMRC during a disclosure
Participate in negotiations and address technical challenges
Liaise with accountants and/or solicitors
Obtain information and update you regularly
Churchill Tax Investigation will reduce the stress and worry of a complex and often daunting time
Churchill Tax Investigation can save you a considerable amount of money through our expertise, skills in this complicated area and years of experience.
For a free, no obligation discussion on any Offshore Disclosure, please contact our team today who can answer your questions and provide the best tax and disclosure advice.