The Worldwide Disclosure Facility (WDF) provides a mechanism for making voluntary disclosures to HMRC concerning ‘offshore interests’.
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HMRC has intensified its focus on closing the ‘tax gap’ and increasing transparency among global tax authorities to combat offshore tax evasion
Description
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Taxpayers must ensure full compliance with their UK tax obligations to avoid severe penalties from HMRC. This applies to individuals, companies, partnerships, and trustees.
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Why You Need To Review Your Tax Position
1. Increasingly Complex and Changing UK Tax Legislation
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The rules concerning offshore matters have changed drastically and rapidly.
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Anti-avoidance measures have been introduced, targeting offshore structures.
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You could be inadvertently affected by issues created by third parties or changes to complex tax legislation that you have not noticed.
2. Increasing Global Transparency
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The Common Reporting Standard (CRS) is now in force, facilitating automatic exchange of financial information between countries.
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Over 100 countries have committed to exchange information under the Organisation for Economic Co-operation and Development (OECD) Common Reporting Standard, significantly increasing international tax transparency.
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HMRC’s ‘connect’ software collects and analyses millions of lines of data, meaning you could be susceptible to an investigation, even if you are unaware of any tax issues.
3. Penalties and Other Consequences
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HMRC is prosecuting more cases and demanding higher penalties for offshore offences (up to 300%).
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You could risk reputational damage from HMRC’s ‘Name and Shame’ powers.
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It is important to note that entering the WDF does not provide immunity against HMRC embarking on a criminal investigation.
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How We Can Help
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Our team at Tax team will review your situation to determine whether the WDF is the best option for you.
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Initial Review: We will undertake a review of your particular circumstances and provide our opinion on how best to regularise your tax affairs.
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Voluntary Disclosure: If required, our tax specialists will assist you in making a voluntary disclosure to HMRC. We have considerable experience in assisting clients with WDF disclosures.
If you would like to make a voluntary disclosure to HMRC, please contact us for a free, confidential, and no-obligation discussion. We are happy to offer an initial free-of-charge meeting with prospective clients.