New UK Offshore Disclosure Window Gets Cautious Welcome

NIck Parmee

23 April 2009

A tax investigations partner at UK accountancy firm and business advisor PKF has welcomed the long overdue announcement in the Budget about the second Offshore Disclosure Facility, but points out a disappointing lack of detail.

John Cassidy said: “We welcome today's announcement of a new facility for holders of offshore accounts to voluntarily disclose undeclared tax liabilities. As well as adding to the Treasury's funds, this will enable holders of these accounts to properly square matters with HM Revenue & Customs and get their affairs back in order.

“However, what is disappointing is that the announcement of this facility was made in last year's Pre-Budget Report on 24 November 2008. Now, some five months later, the same announcement is being made again with the only addition being that it will run from autumn 2009 until March 2010. Despite being long awaited, there are no details of the workings of the disclosure facility - such as the level of penalty to be applied - whatsoever.

“At the same time, HMRC is still gathering data concerning offshore account holders by seeking to issue notices to offshore financial institutions, forcing them to provide various data about their customers. No doubt this will be used against those who do not take advantage of the new disclosure facility.”