Tax Investigation Specialists

WLHTax - Campaigns

Isle of Man Disclosure Facility (MDF)

Following the signing of a Memorandum of Understanding between HMRC and the Government of the Isle of Man, a new disclosure facility has been established.

Under the Memorandum of Understanding the Government of the Isle of Man will require financial intermediaries such a banks to inform clients with a variety of interests in the Isle of Man of the disclosure facility. The people involved will be thought to have been UK tax resident at any time during the period from 6 April 1999 to 31 December 2013.

The people notified will then have a limited period – from 6 April 2013 to 30 September 2016 - in which to make a full disclosure to HMRC of any tax liabilities arising from interests held in the Isle of Man. This will include not only, for example, the tax on interest arising from a bank account held in the Isle of Man but also, if appropriate, the tax on the funds deposited into the account, which could have been diverted business takings not previously declared to HMRC.

In exchange for making a voluntary disclosure under the Isle of Man Disclosure Facility, HMRC will go back no further than the 1999/00 tax year; in cases of deliberate concealment HMRC usually has the power to go back up to 20 years. In addition HMRC will limit the penalty they charge; the maximum penalty they can usually charge in cases involving offshore tax fraud is 200% of the extra tax recovered, but under this disclosure facility the maximum penalty will be 10% in most cases – although in certain specified cases this can rise to 40%.

How WLH Tax can help

WLH Tax is a specialist tax investigation firm. We have experience at dealing with similar disclosure facility campaigns HMRC have previously run, such as the Liechtenstein Disclosure Facility.

We will review your tax position and then prepare your disclosure for submission to HMRC; we will then negotiate settlement with them.

Call us now

If you are considering make a voluntary disclosure to HMRC under the terms of the Isle of Man Disclosure Facility, then please contact us on 020 7491 9690 or 020 7491 9696 for a free, confidential and no obligation discussion. We are happy to have an initial free of charge meeting with prospective clients.