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HMRC Disclosure Facilities With Isle Of Man, Guernsey And Jersey
Monday 8th April 2013
Following the recent signings of Memoranda of Understanding with the Isle of Man, Guernsey and Jersey, HMRC have provided further details of the new disclosure facilities which allow investors with accounts in those territories to come forward and settle outstanding tax liabilities.
Under the terms of each Memorandum, HMRC will from 6 April 2013 until 30 September 2016 make available a bespoke scheme to persons eligible to participate in it and assist those persons in complying with their obligations to HMRC.
Subject to eligibility, taxpayers will be entitled to limit their disclosures to tax periods ending on or after 1 April 1999 and to pay penalties within prescribed limits. HMRC has said that it will provide a decision on a particular disclosure as soon as it can and expects most disclosures to be finalised within nine months of application.
Each facility is open to individuals who have been resident in the UK for tax purposes at any time between 6 April 1999 and 31 December 2013 and companies or any other legal person either incorporated in the UK or resident in the UK for tax purposes at any time between 1 April 1999 and 31 December 2013.
To make a disclosure, the taxpayer will need to confirm that they are eligible and apply to HMRC to make a disclosure. HMRC will issue a unique reference number and confirmation of which disclosure pack to be used. The taxpayer will be required to make a payment within 30 days of the application date that accurately reflects the total tax liability of the disclosure and complete and return the disclosure pack to HMRC as soon as possible.
The taxpayer will need to make their disclosure within six months of the application being made. If further time is needed, HMRC has indicated that the taxpayer should contact the Offshore Disclosure Facility Helpdesk as soon as they have received their application reference number.
To support the objectives of each disclosure facility, the respective governments will require financial intermediaries to contact relevant persons to advise them of the disclosure facilities before 31 December 2013, to remind them about the disclosure facilities during the six month period ending 30 September 2016, and to ensure adherence to legislation for the prevention on money laundering.Contact Us