HMRC have written to tax advisors who have taken part in the Liechtenstein disclosure facility (LDF), informing them on common errors that lead to “unnecessary delays” in the system.
From 1 April 2013, HMRC have said they will be taking a more robust stance on whether LDF certificates are issued in such circumstances. Incomplete disclosures may be taken as a sign of lack of co-operation, leading to the withdrawal of the beneficial terms under the facility.
According to HMRC, the most frequently omitted items are:
- A narrative explanation detailing the background to the previously undisclosed items;
- Computations showing how the taxable figures in the disclosure have been arrived at;
- A fully completed certificate of full disclosure;
- The statement of assets and liabilities at the end of the final year covered by the disclosure;
- Completed letter of offer; and
- Full payment of the tax, interest and penalties due in the offer.
It is therefore essential to take suitable advice from experienced advisors, in order to ensure the terms of the LDF can be met. Eaves and Co have successfully completed a number of disclosures under the LDF and would be happy to assist.