So much so, that HMRC increased their expectations of raising £1bn by the end of the amnesty, March 2015, to £3bn.
So far, each disclosure has yielded an average of £300,000 additional revenue for HMRC but the chances of HMRC actually realising their targets are pretty slim.
First and foremost the amnesty allows those with offshore assets the chance to wipe the slate clean and normalise their tax affairs by offering promising benefits such as 10% fixed rate penalties and immunity to prosecution.
However, even with such encouraging benefits on offer it seems as though HMRC will not reach their current targets.
The total number of registrations has shown a steady increase over the past 18 months.
1,351 taxpayers had registered in the scheme by March 2011 which was up from 419 by March of last year. At this current rate of increase, HMRC will hit their targets of around 5,000 registrations by the end of the amnesty; March 2015.
With the present average of £300,000 per disclosure, this will rake in a total of £1.5bn overall.
Although a terrific sum, this would fall short of HMRC’s new expectations of raising £3bn.
One criticism currently doing the rounds is that HMRC, if they want to meet their own targets, should be publicising the scheme far more than they are doing to attract the individuals they believe are stashing money away abroad.
This, however, may not be an easy feat as the general public feel strongly about the facility as they don’t think that tax evaders should be given an amnesty.
The general consensus is that a huge majority of taxpayers eligible to register for the LDF are holding back; but why?
Well, firstly it appears that individuals are waiting for the details of the deal with Switzerland to be finalised before committing themselves to the LDF.
Although HMRC announced in October last year that an agreement was being sought, it has been strongly claimed that terms offered will be nowhere near as favourable as those of the Liechtenstein Disclosure Facility.
Even Swiss banks are now advising customers to register for the LDF now.
Secondly, one of the main points of the LDF, the Liechtenstein banks beginning to investigate their own customers, has not yet come into fruition.
Under the original agreement between the UK and Liechtenstein, Liechtenstein banks must contact their customers by October 2011 to see if they have links to the UK.
The account holders must then either provide proof to the bank that there are tax compliant or they must provide proof they have registered for the LDF.
If the bank receives evidence of neither, they must refuse their custom.
However, reports suggest that the banks in Liechtenstein themselves have not yet begun that process.
Due to this, it is widely expected that the deadline of the Liechtenstein Disclosure Facility will be extended to 2016 or even 2017.
When the Liechtenstein banks do begin the process of investigating their own customers, it is expected that there will not only a surge in those registering for the facility but also an increase in the average tax collected in each disclosure.
KinsellaTax Investigations would be delighted to arrange for a Liechtenstein Disclosure Facility for ANYONE who has an overseas bank account, whether it is in Liechtenstein or not.
One of our dedicated tax investigation experts will hold a confidential discussion with you about your situation and give you the assurances you really do need
We also offer expert advice and representation in all types of tax investigations by HMRC, including: Code of Practice 9 for tax fraud, Code of Practice 8 for tax avoidance, voluntary disclosures and many more.
For more information on any of the specialist tax investigation services we offer pick up the telephone NOW and call 0800 471 4546.
If you have a voluntary disclosure to make to HMRC for offshore income then you need to get started now. The longer you wait, the more likely it is that HMRC will open an enquiry into your tax affairs.
We will fight for your rights.
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