LDF and Swiss-UK Tax Agreement
under investigation in the past are able to participate in the LDF.* HMRC is open to offers from rele-
vant persons regarding payments by instalments or timing of the sale of assets in order to fund the
payment of tax payable.** HMRC will not publish names and details of these individuals (no naming
and shaming).?
If there is an undisclosed bank account from a UK branch, this account is not eligible for the time pe-
riod, lower penalties and composite rate.” The person who fulfils the LDF process is not subject to
criminal investigation unless it is criminal property. However, a person using the LDF has to declare
the main source of their assets.” In the form provided, the person has the option of ticking a box for
inheritance, business takings, non-business income and more. If none of these suggested, legal sources
is correct then “others” must be selected. As Fisher mentions, it is very unlikely that someone will
willingly declare some kind of organised criminal activity.” HMRC will undertake criminal investiga-
tion against FIs which do not fulfil their obligations under the taxpayer assistance and compliance
programme.”
The low penalties of 10% or 20% are acceptable and a benefit of the LDF. The exclusion of persons
under investigation is also understandable. The disclaimer for undisclosed bank accounts in UK
branches is evidence that the UK government distinguishes between foreign FIs ignoring UK law and
UK companies breaching UK law.
2.3.3.9.3 Eligible Person
An eligible person has to provide at least the following information to HMRC during the LDF proce-
dure:??
e Name, address and date of birth
e Passport copy
e National insurance number
e Full information and documentation about the circumstances
5 HMRC, LDF FAQ, March 2013, sec. 1.24.
?$ Memorandum of Understanding, 2009, schedule 6, no. 13, sec. f.
27 Memorandum of Understanding, 2009, schedule 6, no. 13, sec. h.
?5 Memorandum of Understanding, 2009, schedule 6, no. 4, sec. d.
?? Memorandum of Understanding, 2009, schedule 6, no. 9.
??? Fisher, 2012, p. 157 & 158.
2! Memorandum of Understanding, 2009, schedule 6, no. 17 & 18.
?? Memorandum of Understanding, 2009, schedule 6, no. 10.
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