Worldwide Disclosure Facility launched by HMRC October 2016

HM Revenue & Customs (HMRC) has announced the creation of a new Worldwide Disclosure Facility (WDF) that will allow people to ensure their affairs are correct before the Common Reporting Standard (CRS) comes into force on in October 2018.

The WDF will allow taxpayers to make a full voluntary disclosure of any overseas assets which may be impacted by the new Standard.

Any person or entity with tax liabilities, relating to all direct taxes and Inheritance Tax, dating back up to 20 years will be able to make use of the facility.

Failure to act could result in significant penalties or even criminal investigation if the offence is deemed serious enough. Under the new legislation HMRC will also introduce new sanctions for “requirement to correct” or “failure to correct”.

Those that use the facility on a voluntary basis will receive lower penalties than if the disclosure were prompted by an HMRC enquiry.

HMRC will have the right to deny access to the facility, to review the penalty loading and to investigate the disclosure further, particularly if it is made subsequent to a previous HMRC enquiry.

Those that submit voluntarily are not guaranteed immunity from criminal prosecution, however historically HMRC have generally not pursued a criminal investigation when a voluntary disclosure has been made.

HMRC has reiterated that the WDF is the final opportunity to make a voluntary disclosure to HMRC before the automatic exchange of information comes into force. HMRC will start to receive details on overseas assets, income and gains in May 2017.

Link: Disclosure Facility

Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ   T: 01332 202660

Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd.  Registered in England No. 05770414