LDF and Swiss-UK Tax Agreement
audited 30 months after signing the MoU.* Banks and trust companies which are not on “the A List”
are audited in the same way as under the anti-money laundering laws.”” It seems that no “A List” has
existed until now.
The fact that an “A List” has not been published officially until now is rather remarkable. Further-
208
more, the FMA released a new due diligence audit note^* in May, 2012, with no comment regarding
an LDF audit. This could be a mark of confidence for the FI.
2.3.3.9 Schedule 7: The Disclosure Facility
2.3.3.9.1 Availability and Tax Rate
The LDF has been available since 1 September 2009 for relevant persons with new or existing relevant
property in Liechtenstein. The tax liability is limited back to 1 April 1999 or the previous six UK tax
years in cases of innocent error (e.g. a relevant person, and no one else, made the failure to report rele-
vant property and this error could happen to any reasonable person). HMRC decides if it is an innocent
error.”
The eligible person has the option of using the 40% composite rate (this includes tax due from prede-
cessors) or their actual tax rate (National Insurance Contribution, Income, Capital Gains, UK Inher-
itance, Corporation, Stamp Duties and VAT)."° When an eligible person chooses the composite rate,
all other tax liabilities of the related assets are compensated. This also includes inheritance tax.?' The
CRO was only available between the 1999 and 2009 tax years. In subsequent years, normal UK rules
for taxation applied? However, HMRC later offered the option for a 50% CRO from 2010 to 2011.2"
The composite rate is particularly advantageous in cases involving companies, foundations or other
entities. 2
26 Memorandum of Understanding, 2009, schedule 6, no. 3 - 10.
27 Memorandum of Understanding, 2009, schedule 6, no. 11.
?* Finanzmarktaufsicht Liechtenstein, 2013, p 1-9.
?? Memorandum of Understanding, 2009, schedule 6, no. 1, sec. a - c.
?? Memorandum of Understanding, 2009, schedule 6, no. 1, sec. d & no. 7.
?!! HMRC, LDF FAQ, March 2013, sec. 7.1 & 7.3.
?? HMRC, LDF FAQ, March 2013, sec. 7.2.
23 HMRC, LDF FAQ, March 2013, sec. 7.19.
?* Hosp & Langer, 2011 (3), p. 248.
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