HM Revenue & Customs is currently in the process of writing to hundreds of HSBC customers with Swiss bank accounts informing they are under suspicion of tax fraud. According to McGrigors those customers in receipt of a letter from HMRC have now lost the opportunity to save potentially thousands of pounds in tax fines by making a disclosure under the LDF.
Phil Berwick, director of tax investigations at McGrigors, said: “Time is running out for taxpayers with undisclosed liabilities in offshore accounts. Taxpayers have widely assumed that they have until 2015 to make a disclosure under the LDF, but if the Revenue finds them first, that opportunity is lost.
“Many HSBC customers who received letters from HMRC will have been eligible for the LDF, but it’s likely that only a minority will have seized the opportunity. Those that did not register for the LDF will now be kicking themselves. I would urge taxpayers with undeclared tax liabilities using other foreign banks to come forward now before it is too late.”
Under the terms of the LDF, HMRC will offer reduced penalties to individuals and businesses with undeclared income or gains held in offshore bank accounts or investments if they make a full disclosure.
It also means those who do come forward will only need to declare from April 1999 rather than the usual 20 year period. It also offers immunity from prosecution from tax fraud.
