Tax Investigation Specialists

WLHTax - Liechtenstein Disclosure Facility

LDF Case Studies

Example 1

WLH Tax were approached by a firm of accountants who acted on behalf of a UK resident and domiciled family. The firm had registered the individual family members for participation in the HMRC’s New Disclosure Opportunity (NDO) campaign and were in the process of preparing a disclosure on this basis, covering a twenty year period. The LDF was launched before the NDO disclosure was submitted and our opinion was sought on how to proceed. The UK resident family had substantial interests in Switzerland in the form of bank deposits and investments. The income had never been reported on their respective UK income tax returns.

WLH Tax quickly established that significant tax savings could be achieved by making a managed voluntary disclosure to HMRC under the terms of the LDF as opposed to the NDO. In this case, funds had been held in Switzerland for in excess of twenty years and substantial income and gains had arisen during this interval. WLH Tax successfully ensured that the family members could participate in the LDF and registered them for the LDF process, with the benefits of the favourable terms. This resulted in all income and gains prior to 6 April 1999 being excluded from the settlement with HMRC with a fixed 10% penalty secured. The overall liability was minimised and a worrying burden lifted from the family members who had long wanted to regularise this issue.

Example 2

WLH was approached by a UK resident professional who had been in receipt of self-employment income for 15 years, but which had not been disclosed to HMRC. This individual was very worried that if HMRC found out about his activities, he would be prosecuted for tax evasion.

WLH Tax established that the individual concerned did not have either a bank account in Liechtenstein or an account in any other jurisdiction; however he did have an interest in a property situated outside the UK. This asset was held prior to 2 September 2009, when the LDF came into existence. WLH Tax were able to utilise the fact that the individual held an offshore asset at this date and would therefore qualify for the LDF and the favourable terms that it offered. The individual was registered for inclusion in the process. This individual was very concerned at being “discovered” by HMRC and was very pleased that the LDF could be used to regularise his UK taxation affairs. WLH Tax assisted the individual in opening a Liechtenstein bank account to secure a relevant asset. WLH Tax were able to ensure that this individual was able to make a complete and full disclosure to HMRC but with the significant benefits of the LDF ensured in terms of a fixed 10% penalty and the limitation period.

Example 3

WLH Tax was approached by an individual who was the subject of an HMRC Compliance check. This individual was a partner in an offshore share dealing structure and had a number of tax issues that required to be regularised. He had been trading for many years and had not made a complete disclosure to HMRC of his earnings in the past. He was also very concerned that HMRC would also consider a criminal tax investigation in view of the issues involved and the amounts at stake. A criminal prosecution would irreparably damage his reputation in the financial world and would also result in the loss of various financial licences that would be fatal for his career.

WLH Tax recognised immediately that this individual would benefit from the full and favourable terms offered by the LDF as he had an offshore bank account that had not been opened through a UK branch or agency. Furthermore, the current HMRC enquiry did not preclude him from participation in the LDF and securing the best terms on offer. WLH Tax arranged for the individual to transfer funds from his offshore bank account into a newly opened Liechtenstein bank account. This ensured his eligibility in the LDF process. WLH were then able to review his affairs and put forward settlement proposals to HMRC that fully utilised the period of limitation and the fixed 10% penalty. The client’s concerns regarding an HMRC prosecution were also fully allayed and he was able to re-focus on his business affairs once again.

Call us now

Please call WLH Tax on +44 (0) 207 491 9690 or +44 (0) 207 491 9696 if you wish to discuss the LDF in greater detail.