Why make a Disclosure?
There are occasions when you may wish to make a disclosure of a past tax irregularity on a voluntary basis rather risk waiting for HM Revenue & Customs (HMRC) to start an investigation. Such a strategy needs careful consideration and professional advice taken. In some instances, making a voluntary Disclosure can avoid a prosecution. If a civil route is obtained, then making a voluntary Disclosure can mitigate any financial penalties that are levied. Since the introduction of the Common Reporting Standard (CRS), HMRC receives information annually from approximately 130 countries around the world on an annual basis.
By seeking professional advice, you can be guided as to what alternative routes are available at any time and the merits and drawbacks of each as well as what to say and how to say it.
Who can make a Disclosure?
Anyone. The taxpayer can be an individual, partner, company or trust.
The actual Disclosure itself is often made by a professional adviser on the taxpayer’s behalf.
How do you make a Disclosure?
It depends upon the facts of each case and timing may be an issue. Most Disclosures will be in a written format and may be done on-line but this can follow an initial telephone call or during a meeting.
HMRC can be approached direct or though any current Disclosure Facilities that may be available in order for such a Disclosure to be made.
What happens after a Disclosure?
HMRC will consider the Disclosure and whether they are satisfied that it is full and complete.
In more complicated situations it may lead to a further meeting and the submission of a Disclosure Report, in which all relevant matters are identified, explained and the tax implications calculated.
Fundamental to any disclosure is that it has to be a full and complete Disclosure. Failure to do so may result in criminal prosecution.
If you wish to discuss this or any other matter with a member of the team, please contact us.