Mazars warns UK taxpayers of crack-down on Liechtenstein investments
On 18 January 2012 Lindsay Pentelow, partner at Mazars warned that UK taxpayers with investments in Liechtenstein are likely to be contacted soon to ensure that their investments have been disclosed to the UK tax authorities.
Lindsay commented: “Thousands of people are likely to receive letters from their Liechtenstein financial intermediaries over the next few weeks. Recipients will have to certify UK tax compliance, or demonstrate they have already disclosed or are in the process of disclosing to HM Revenue and Customs under the HMRC Liechtenstein Disclosure facility (LDF). Otherwise, the funds have to be transferred out of Liechtenstein.
"The LDF is very advantageous with limits on penalties and the number of years of back tax which have to be paid. Whilst the letter will give up to 18 months to respond, it is important that taxpayers act promptly since they may otherwise lose the advantage of the LDF and be subject to higher penalties and more years of tax. If you have one of these letters you need professional advice to help certify that you are UK tax compliant or to understand the impact of making a disclosure to HMRC."
The LDF was negotiated by HM Revenue and Customs (HMRC) with the Liechtenstein authorities in 2009. It uses information gathered by financial intermediaries managing funds on behalf of UK taxpayers to ensure their tax positions are regulated. If you have received one of these letters or would like more information, please contact Lindsay on lindsay.pentelow@mazars.co.uk or Janet Pilborough-Skinner on janet.pilborough-skinner@mazars.co.uk for assistance.
Posted by: Mazars LLP
