In the Autumn of last year over 50 countries agreed on a Common Reporting Standard (CRS); an agreement to share information on residents’ assets and incomes. It is therefore clear that there will be a huge rise in the number of reportable accounts when information exchange commences.
You therefore need to be aware that if you have undisclosed funds in other jurisdictions you should think about how you can best manage your position. By 2017/18, tax authorities in most countries around the world will be able to build up a clear picture of what assets their taxpayers hold overseas.
Many countries have disclosure campaigns and the tax authorities have been keen to emphasise they would rather taxpayers enter into voluntary disclosure agreements now than wait for enforcement action.
There is continuing political pressure to take a tougher line in the wake of various tax-evasion scandals and the UK has announced that some disclosure facilities Liechtenstein Disclosure Facility (LDF) and the Crown Dependencies Disclosure Facilities are to close in December 2015, earlier than originally planned, to be replaced by a new, more onerous disclosure facility running until mid-2017 and the start of CRS reporting.
If you would like to discuss any tax issues you have or would like assistance in making a disclosure please do call Sue Stephens in our tax department.