People with offshore investments who have notified HM Revenue & Customs (HMRC) that they want to use the New Disclosure Opportunity (NDO) have just one week to make their disclosures online and to pay all tax, duties, interest and penalties owed in full.
To take advantage of this final opportunity to put their affairs in order at a favourable penalty rate of 10%, taxpayers must disclose online and pay the full amount due, including the penalty, by 12 March 2010.
Over the next few days HMRC will be writing to those who have notified to remind them to make a full disclosure and payment.
Once the scheme’s doors are closed, those found to have undisclosed offshore assets will be subject to full tax investigation, penalties of up to 100% and in the most serious cases criminal prosecution.
HMRC has issued statutory notices to over 300 banks in the UK requiring them to provide relevant information about customers with offshore accounts. This information is starting to come in and it will be used to ensure that everyone pays the right tax.
Dave Hartnett, HMRC’s Permanent Secretary for Tax said:
“Taxpayers with offshore investments who have notified us of their intention to disclose have done the right thing, saving themselves 90% of the potential penalties for failing to disclose. They now need to follow through by making their disclosure online and paying in full all the taxes they owe.”
Notes for editors
1 To use the NDO a notification of the intention to disclose must have been made to HMRC. The deadline was 4 January 2010.
2. Disclosures can be made electronically to 12 March 2010.
3. The penalty rate of 10% will not apply to those written to by HMRC under the Offshore Disclosure Facility (ODF) in 2007. These customers will pay 20%. The ODF ran from April to November 2007, and raised over £400m in revenue.
4. Once this disclosure window closes on 12 March 2010, those taxpayers who have not come forward but are found to have unpaid tax liabilities will face penalties of at least 30% rising to 100% of the tax evaded and risk criminal prosecution.
5. The Chancellor announced at PBR that the Government will legislate to make clear that all unpaid offshore tax will be viewed as deliberate non-compliance – attracting penalties up to 100% of tax due.
Issued by HM Revenue & Customs Press Office
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