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| LITRG comments on offshore accounts facility |
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The Low Incomes Tax Reform Group (LITRG) has requested that HMRC keep open the recently publiscised disclosure of investment income facility for low income amounts for the whole of this tax year. Earlier this week HMRC announced details of arrangements enabling investors with offshore accounts to disclose any income and gains not previously included in their tax returns (see link below). However, rather less publicity has been given to a parallel deal for anybody with something to confess to the tax authorities not connected to offshore accounts (the “onshore deal”). The facility is open to those who hold or have held an offshore account, either directly or indirectly, that is in any way connected to a loss of UK tax and/or duty. Investors are being invited to come clean to HMRC in return for either a fixed penalty of 10%, or for no penalty at all if the income or gain that had been omitted was £2,500 or less. John Andrews, Chairman of the Low Incomes Tax Reform Group (LITRG), says: “Many people on low incomes might wish to set the record straight with HMRC for small amounts that would attract no penalty, but they will effectively be denied the opportunity. We believe this is unfair and that HMRC should keep this offer open for low income amounts for the whole of this tax year.” Whilst LITRG state that there is nothing inherently wrong with HMRC’s approach, the follwing points have been made:
John Andrews adds: “One final point to note is that this deal should not be taken up by those who have just made an innocent mistake.” Related News New arrangements for offshore disclosure agreements announced Links
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Thursday, 19 April 2007 | 856 Hits |
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