HMRC's crackdown on tax evasion with offshore accounts in Liechtenstein is gathering steam.
HM Revenue Customs' (HMRC) crackdown on tax evasion with offshore accounts in Liechtenstein is gathering steam, says Contractor Accountants.
HMRC has been sending letters to UK taxpayers with Liechtenstein accounts reminding them that they must comply with UK tax law.
An agreement was signed last year between the Liechtenstein government and HMRC stating rules set to be enforced this September. It specified that those with such bank accounts would have to undergo a tax audit.
Anyone with outstanding UK tax liabilities can volunteer details of their deposits via the Liechtenstein Disclosure Facility (LDF) for a 10% penalty for tax evaded within the last 10 years.
The LDF runs until March 2015. Taxpayers who fail to make a disclosure are likely to have to pay penalties and could also have to close their bank accounts.
Crown Prince of Liechtenstein, Prince Maximillian, said: "This new arrangement means the risk of using offshore bank accounts as a tax haven is now extremely high."