YouTube warning to offshore tax dodgers
HMRC have released a YouTube video to inform taxpayers of the New Disclosure Opportunity (NDO) for undisclosed tax liabilities. The video is available to view by visiting the YouTube website atwww.youtube.com and searching for “HMRC NDO”.
In addition to general warnings about what will happen to those who continue to hide income and gains offshore the video contains a number of key messages:
- The deadline for making a notification of the ‘intention to disclose’ for both online and paper submissions ends on 30 November 2009.
- Following receipt of a notification HMRC will issue a Disclosure Reference Number (DRN). Full disclosures can then be made by post until 31 January 2010 and online until 12 March 2010.
- The NDO is not an amnesty. All outstanding tax and interest on late paid tax will be payable. However any penalties will generally be a straightforward 10 per cent.
- The NDO is the final opportunity for taxpayers to disclose previously untaxed income and gains without incurring significantly higher penalties.
- Taxpayers who have not made a disclosure by 12 March 2010 and are later found to have undeclared tax liabilities will face penalties of between 30% and 100% of the tax evaded as well as an increased risk of criminal prosecution.
- Taxpayers who currently have undisclosed taxable income (for example in accounts in offshore banks) are advised to take action immediately.
It will often pay to take professional advice if the sums to be declared are material.