Offshore disclosure deadline looms

Category: Offshore savings
Date: 3/5/2010

Investors who signalled their intention to divulge their offshore tax affairs under the New Disclosure Opportunity (NDO) have just a week left to do so.

Some ten thousand investors came forward as part of HM Revenue & Customs' (HMRC) initiative to claw back millions in unpaid offshore taxes.

The scale of the operation meant HMRC extended the deadline for investors to notify their intention of disclosure from 30 November 2009 to 4 January 2010.

Those who did so have been told that they now have just one week to pay all their tax, duties, interest and penalties owed.

By getting their affairs in order by 12 March, investors will face a favourable penalty of ten per cent of taxes owed.

Those found to have undisclosed offshore assets after the scheme has closed have been warned they will face a full tax investigation, penalties of up to 100 per cent of monies owed and the possibility of criminal prosecution.

HMRC has requested information on offshore customers from 300 UK banks to ensure all tax is paid.

"Taxpayers with offshore investments who have notified us of their intention to disclose have done the right thing, saving themselves 90 per cent of the potential penalties for failing to disclose," said Dave Hartnett, HMRC's Permanent Secretary for Tax.

"They now need to follow through by making their disclosure online and paying in full all the taxes they owe."

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