Thursday, 22 December 2011

HMRC extends LDF deadline - 22 Dec 2011 - Accountancy Age

HMRC extends LDF deadline

by Jaimie Kaffash

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22 Dec 2011

Gutenberg Castle in Liechtenstein

THE TAXMAN has extended the deadline for Liechtenstein financial intermediaries to investigate their UK clients over undisclosed tax liabilities.

Under the terms of the Liechtenstein Disclosure Facility, banks and other financial institutions in Liechtenstein were required to send letters to all their UK clients calling on them to settle any tax obligations. The deadline for completing this was originally 31 December 2011, but this has been extended to 31 March 2012.

HM Revenue & Customs said this was because of the "complex steps" involved in identifying UK clients and the "larger than anticipated number of people likely to receive a letter".

The facility offers UK residents the opportunity to settle previous outstanding tax liabilities with a guarantee of immunity to prosecution and a fixed penalty rate.

Andy Cole, head of HMRC's negotiating team dealing with the arrangements between the UK and Liechtenstein said: "Liechtenstein and HMRC are both committed to ensuring UK taxpayers with undisclosed assets are meeting their obligations to the Liechtenstein financial centres and to us, and crucially, that UK taxpayers who need to regularise their taxes are brought back into the tax system."

Katja Gey, director of the Office of International Affairs in Liechtenstein, said: "While virtually all of Liechtenstein's financial intermediaries have completed their work in identifying those whose connections with the UK will result in their notification, this three month extension for formal notification will permit our intermediaries to establish the relevant beneficial interests and ensure that the entire process reflects the sympathetic and helpful approach HMRC and Liechtenstein are committed to."