Liechtenstein is a haven for UK-based tax dodgers – although HMRC is working hard to put a stop to the practice via a tax disclosure ‘opportunity’ that enables anyone who confesses to hiding money in the tax haven will only have to pay 10% of the tax owed.
In addition to the 10% penalty though, people will still have to pay tax, plus interest, going back as far as the last 10 years, so the final tax bill could still be hefty even though the 10% penalty limit sounds generous.
Since the scheme began more than 2,400 people have come forward to pay an extra £363 million in tax and penalties.
And HM Revenue & Customs (HMRC) expects this figure to rise to £3bn by 2016, significantly more than the £1bn initially expected.
UK authorities estimate around 5,000 UK taxpayers have had money hidden in Liechtenstein – going back generations, in some cases – and co-operation between the UK and Liechtenstein authorities has now been strengthened by the signing, for the first time, of a formal double-taxation agreement between the two counties.
If you’ve business interests in Liechtenstein, you’ll want a low-cost and reliable teleconference, or conference call, provider – here’s how to quickly and easily set up a call between UK and Liechtenstein, using nothing more than a mobile or landline.