Whilst taxpayers were required to notify HMRC of their intention to disclose under the New Disclosure Opportunity (NDO) by 4 January 2010, HMRC's David Hartnett has said that the department is now beginning to use data obtained from banks to identify people who have not made disclosures despite having relevant offshore accounts and has stated that “We are starting our investigation and penalties can be up to 100% of the tax not paid.

It is very important to remember that, when someone comes forward voluntarily, the penalty is always lower than when we catch the evader.  This means it is still well worth contacting HMRC if you have undisclosed offshore accounts”

Participating taxpayers now have until 12 March 2010 to submit their financial details to HMRC.

HMRC's other offshore tax initiative, the Liechtenstein Disclosure Facility, which has terms more lenient than those of the NDO, runs until 31 March 2015.

If you are considering making a disclosure under either opportunity, please contact AG Tax Consulting.

Posted on 25 Jan 2010