HMRC warns ‘net is closing’ on tax evaders
Tax office claims new treaty between UK and Liechtenstein shows “net is closing” on tax evaders using offshore structures.
More than 2,400 people have registered to disclose unpaid tax under the Liechtenstein Disclosure Facility (LDF) with £363m already paid in tax bills, HM Revenue & Customs has revealed.
The LDF is now expected to bring in up to £3bn by 2016 based on the current numbers of disclosures.
The figures were released as the UK and Principality of Liechtenstein prepared to sign a double taxation agreement (DTA) yesterday (11 June).
The DTA will remove obstacles to investment and other cross-border economic activity and will give businesses increased certainty about their tax treatment.
David Gauke, Exchequer secretary, said: “The government is determined to clamp down on tax avoidance at home and abroad.
“The UK has the largest tax treaty network in the world but, until now, Liechtenstein was the only country in the European Economic Area we had no agreement with.
“This new treaty and the existing disclosure facility show that the net is closing on those who try to evade their UK tax liabilities by using offshore structures - there are fewer and fewer places to hide.”