Worldwide Disclosure Facility Disclosures for those with Offshore Assets or Income - The Worldwide Disclosure Facility
31 December 2015, all other HMRC offshore disclosure facilities closed.
Up to that
date, HMRC offered a number of incentives to encourage people to come
forward and clear
up their tax affairs. HMRC have been busy securing data from more than
100 overseas territories and prior to the automatic exchange of that
information and new
sanctions come into force, the Worldwide Disclosure Facility represented
a final chance to come forward before the tougher approach to offshore
The Worldwide Disclosure Facility opened on 5 September 2016 and
still remains open now however, after 30 September 2018, new sanctions
under the Requirement to Correct legislation were introduced that
reflect HMRC’s toughening approach. You can still make a disclosure
under the Worldwide Disclosure Facility but the current terms will not
be as good as those we have seen before 30 September 2018 because of the
increased exposure to penalties under the Requirement to Correct.
Anyone who wants to disclose a UK tax liability that relates wholly
or partly to an offshore issue can use this facility. An offshore issue
includes unpaid or omitted tax relating to:
income arising from a source in a territory outside the UK assets situated or held in a territory outside the UK activities carried on wholly or mainly in a territory outside the UK anything having effect as if it were income, assets or activities of a kind described above
It also includes funds connected to unpaid or omitted UK tax not
included above, that you’ve transferred to a territory outside the UK or
are owned in a territory outside the UK. If at any time HMRC knows or suspects that assets or funds included
in your disclosure are wholly or partly made up of criminal property,
they have discretion to refuse your application to participate in the facility.
If you’re not resident in the UK, you can still make a disclosure if you meet the eligibility criteria mentioned above.Whilst
there is no immunity from prosecution it is unlikely those voluntarily
coming forward will be prosecuted save for a few, exceptional
Once HMRC has been notified
of your intention to make a disclosure (you will then be issued with a
Disclosure Reference Number (DRN)) and you will have only 90 days (more
time can be granted for complex disclosures) to complete and submit your
full discolsure to HMRC. This means that complex issues around
residency, domicile, the liabilities itself, interest and penalties will
all have to be fully considered quickly to comply with the requirements
of the Worldwide Disclosure Facility.
We have extensive
experience in making managed disclosures to HMRC, feel free to contact
us to discuss this or any other tax matter on a confidential basis.
Contact usFor a confidential, no commitment discussion about your concerns please call us on 01283 761 777 or email us using our Email Enquiry Form