Thursday, 24 December 2015

An automatic exchange of information between the governments of the UK, US, EU member states.....last chance for those with unpaid tax

There are new rules coming into force in January next year as the Liechtenstein Disclosure Facility (LDF) closes on 31 December after 6 years of its existence. LDF is an automatic exchange of information between the governments of the UK, US, EU member states and certain non-EU countries. This exchange of information is part of ongoing international efforts to advance offshore tax evasion.

On 31 December 2015 any financial accounts held by non-residents will be subject to due diligence procedures and any non-residents accounts opening in January 2016 will be required to self-certify. The LDF was originally set up to encourage people with unpaid tax to come forward without paying the full penalties. However, to be eligible for the LDF it is necessary to have a proper connection with Liechtenstein, such as bank deposit before application.

December 31 is a public holiday in Liechtenstein that is why candidates need to submit their application this week to have a certificate of eligibility in time. Despite the LDF closure announcement, people keep coming forward. Anyone with income or assets abroad should know their tax position and consult with a specialist about their options before it is too late.

Those with undeclared bank accounts have only few days to register under the LDF, otherwise they might go through HMRC investigation in the nearest future.

Here at Just Service we have an in-house Tax Specialist who is ready to explain to you your current situation and discuss how to best manage it.

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