HMRC’s New Disclosure Opportunity (NDO) will begin on the 1st September 2009 and involve accounts in hundreds of banks, HMRC has confirmed. Account holders will have until 12 March to submit details.
The latest move to combat tax evasion will offer holders of offshore bank accounts the chance to reveal details of undeclared income with fines limited to 10% or 20% depending on whether an individual was contacted or not during the 2007 Offshore Disclosure Facility (ODF).
Notifications from individuals of their intention to make use of the NDO will be accepted in paper form from the 1st September and via the web from the 1st October. The notification window will close on the 31st October 2009.
Those choosing to submit details on paper will have until the 31st January 2010 to do so while people preferring to proceed online will have until the 12th March 2010.
HMRC says that several hundred banks will be approached over the coming weeks.
No details about the terms of the NDO have been announced but recommendations that the maximum period for which arrears are investigated be kept ‘short and sweet’ for the benefit of account holders and the Revenue.
During the ODF, targeted individuals were expected to report undeclared liabilities over the prior 20 years which had a hugely negative impact on the overall amount of tax arrears that HMRC collected.
Many potential users of the ODF were put off by the sheer enormity of the project. The scale of the amounts they would have to pay, irrespective of whether they were justified, acted as a major disincentive. As did the huge, perhaps impossible, task of obtaining or recreating accurate records for such a long period.
The maximum period for the NDO should be kept short – set at ten years or less – to sweeten the offer for the offshore account holders and provide a real incentive for them to come clean.
KinsellaTax dealt with many Offshore Disclosure Facilities which were long winded and sometimes it was impossible to prove exactly what monies were owed or not to the Revenue.
The shorter the better, KinsellaTax thinks, so that records can be obtained relatively easier than the ODF.
KinsellaTax can deal with matters on your behalf through these troublesome times and take the relief and stress out of the overall investigation letting you get on with your life.
We have officers in Manchester, London and Birmingham. Interviews are strictly by appointment only and they run a nationwide, 24 hour, 7 day a week service.