The Chartered Institute of Taxation (CIOT) welcomes the release by HMRC of some of the details of the forthcoming New Disclosure Opportunity (NDO).
The NDO, announced by the Chancellor in the 2009 Budget, will encourage taxpayers with undisclosed income from an offshore account to disclose their income and suffer a limited penalty.
The CIOT, together with other representative bodies, is working with HMRC with the intention of making the NDO work as effectively and efficiently as possible. The Institute has a number of concerns regarding the initial proposals and understands that these are currently being considered by HMRC as the plans are refined.
Gary Ashford, Chairman of the CIOT’s Management of Taxes Sub-Committee, says: "Those people who have not declared offshore income have evaded tax and we do not condone tax evasion in any way. However, it makes every sense to help such people regularise their tax affairs, particularly as many will have fallen foul of the law through mistake or misunderstanding."
The NDO has been welcomed by the CIOT who have applauded the advance notice of the scheme. The CIOT hopes that this will lead to further publicity from HMRC once the scheme is up and running and potential disclosers have the opportunity to disclose.
Gary Ashford continues: "We are pleased that a number of our recommendations have been accepted, including that the flat rate penalty for those who had no previous invitation to disclose should be 10% in line with the previous Offshore Disclosure Facility (ODF) and that, importantly, tax advisers will be able to file online on behalf of clients."