BDO STOY HAYWARD WELCOMES FINAL TAX DISCLOSURE OPPORTUNITY
4 August 2009 BDO STOY HAYWARD WELCOMES FINAL TAX DISCLOSURE OPPORTUNITY Following the announcement made in this year’s budget, HM Revenue & Customs (HMRC) has today formally launched the New Disclosure Opportunity (NDO), its final offer to taxpayers to disclose any unpaid tax connected with the operation of offshore bank accounts. In return for a full disclosure of all tax irregularities, participants will qualify for a drastically reduced financial penalty of either 10% or 20% of the tax due, compared to the maximum 100% that HMRC would be able pursue if it launched its own enquiries. The 20% penalty will be applied to holders of offshore bank accounts who were targeted, but did not come forward, under a similar initiative that ran in 2007 - the Offshore Disclosure Facility. Other taxpayers who take advantage of the NDO will qualify for a penalty fixed at 10%. Taxpayers who do not take this final chance will face penalties of 30 per cent upwards if HMRC has to make its own enquiries acting on offshore account information the banks are being forced to provide. To participate in the NDO an intention to disclose must be notified to HMRC; this can be done in paper form between 1 September and 30 November or by using HMRC’s web-based facilities, which will be accessible between 1 October and 30 November. Disclosures and full payment of tax, interest and the appropriate fixed penalty must be made by paper between 1 September 2009 to 31 January 2010, or in the period 1 October 2009 to 12 March 2010 if using the web-based facilities. Stuart Lisle, Tax Partner at BDO Stoy Hayward in Southampton said: “Circumstances have conspired to allow HMRC to offer offshore bank account holders a second and final opportunity to disclose unpaid tax connected with their accounts and people affected should give very serious consideration to taking part. Between now and the end of August an opportunity exists for anyone who has a tax issue connected with an offshore bank account to decide whether the NDO is right for them or if some other route exists for dealing with the problem. There are plans afoot to permit HMRC to ‘name and shame’ tax evaders who do not make full disclosure in relation to their tax affairs so we would advise anyone who thinks the NDO may apply to them to seek guidance from a professional adviser. HMRC is flexing its muscles with new information and inspection powers it acquired in April. It should not be forgotten that HMRC can, at any time, recover tax from up to 20 years previously, with interest for late payment and financial penalties – something that could prove very painful indeed”. -Ends- For more information, please contact Matthew Longbottom at BDO Stoy Hayward on 020 7893 2717 or email matthew.longbottom@bdo.co.uk Notes to editors: BDO Stoy Hayward LLP operates across the UK with over 3,000 partners and staff. BDO Stoy Hayward LLP is a UK limited liability partnership and the UK Member Firm of BDO International. BDO international is a world-wide network of public accounting firms, called BDO Member Firms. Each BDO Member Firm is an independent legal entity in its own country. The network is coordinated by BDO Global Coordination B.V., incorporated in The Netherlands, with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located. In the UK the Belfast Firm is operated by a separate Partnership known as BDO Stoy Hayward - Belfast. BDO Stoy Hayward LLP and BDO Stoy Hayward - Belfast are both authorised and regulated by the Financial Services Authority to conduct investment business. BDO Stoy Hayward is an award winning firm. Recent achievements include: • Best Workplace UK - Financial Times 2008 • Audit Team of the Year – Accountancy Age Awards 2008 • Tax Team of the Year – Accountancy Age Awards 2008 • Corporate Finance Deal of the Year – Accountancy Age Awards 2008 • 100 Best Companies to Work For - The Sunday Times 2008 • The Women of Achievement Award – Women in the City 2008 • Business Superbrand - Business Superbrands 2008
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