The Isle of Man, known throughout the world for its favourable tax regime and for its famous TT mountain course, is about to become the focus for the latest HMRC initiative to counter offshore tax evasion. The British Government has concluded an Agreement with the Manx Government based on the recent US/UK FATCA Agreement which allows information on bank accounts etc to be shared.
Operating from 6 April 2013, HMRC have launched an IOM Disclosure Facility to encourage investors with IOM accounts to come clean and report the income. Less generous than the previous Liechtenstein and Swiss Disclosure Facilities, it offers those who have unreported income the chance to make a declaration and such income would then be subject to UK tax and a 10% penalty charge (based on the tax due) for sources up to 2009 and a 20% penalty charge for later years. Those who do not make a voluntary declaration will face significantly higher penalties and possible prosecution.
The IOM Disclosure Facility will be available until September 2016 and will cover income arising from April 1999 but is only available to those who are not already under investigation by HMRC.
If you wish to discuss the IOM Disclosure Facility and what it may mean for you, please contact Paulette Peterson.