RTTNews - Tuesday, the British government inked two agreements with the Government of Liechtenstein that will help in properly taxing the offshore investments of UK residents in Liechtenstein and represent the commitment of latter to increased tax transparency.
A new Tax Information Exchange Agreement will assists both UK and Liechtenstein to exchange information to ensure the right tax is paid in each nation in future.
UK's HM Revenue & Customs said that investors will be given a chance to disclose details of their deposits voluntarily in return for penalties, which would be capped at 10% of tax evaded over the last ten years. Those who fail to make a full disclosure by the end of the programme will find their accounts in Liechtenstein closed down, the HMRC said.
Around 5,000 British investors are believed to have accounts in Liechtenstein, with funds totaling at least GBP 3 billion.
The HMRC report said Tax Information Exchange Agreement and the tax disclosure programme together will provide a unique structure designed to tackle past and future tax liabilities for UK clients of Liechtenstein financial services
Financial Secretary to the Treasury, Stephen Timms said, Today's agreements are very good news for honest taxpayers and investors everywhere. And they represent a big step forward for tax transparency.
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