The Liechtenstein Disclosure Facility is a five-year agreement designed to help UK taxpayers with undeclared assets or income sources in Liechtenstein put their past and future tax affairs on the right footing.
Milsted Langdon’s international tax team is able to advise taxpayers on how the LDF applies to them and assist them in the process of making disclosures involving these offshore tax affairs.
Taxpayers making disclosures under the LDF, which runs from 1 September 2009 until 5 April 2016, are able to benefit from special terms, which include:
- a 10 per cent fixed penalty on underpaid liabilities, although full interest will have to be paid. This compares with a 200 per cent penalty on the most serious cases of offshore tax evasion
- no penalty where an innocent error has been made
- an assessment period going back no further than 1 April 1999
- the option to choose whether to use a 40 per cent composite tax rate on income and gains (although not on capital), thus avoiding the application of more costly taxes that could otherwise be used
- no criminal investigation for a tax-related offence provided there is a full and accurate disclosure and the source of the funds is not from criminal activity
- a single point of contact for disclosures.
We are also able to advise UK taxpayers holding non-Liechtenstein offshore accounts on their options for bringing these within the LDF procedure and the special terms on offer, for example by opening a new bank account in Liechtenstein.