LDF and Swiss-UK Tax Agreement
in 7 months if he wants to apply the composite rate (flat tax of 40 to 50%) or 10 months if he decides
to calculate his tax liability on an actual basis. HMRC will send a disclosure certificate (confirmation,
name, reference number) within 30 days to this person, who has to forward a copy to the FI within 30
days."
If a person is not liable to UK tax obligation or is tax compliant, he has to send a certification to the FI.
This includes a written confirmation from a qualified legal, tax or accounting advisor, a special form
(self-certification) provided by HMRC, a certified or notarised copy of the tax filing or a written waiv-
er and identification form."? Subsequent registration for the LDF if the first is incomplete is not possi-
ble.2?!
The certification process is fast and efficient. HMRC responds within 60 days of receiving the applica-
tion for the LDF and cases are handled within 7 or 10 months. This demonstrates that HMRC is inter-
ested in a fast and efficient procedure.
2.3.3.7 Schedule 5: Review Procedure
The Government of Liechtenstein was required to establish a review procedure.” The review panel
was established on November 21*, 2012"? The panel decides whether an FI has to terminate his ser-
vices to an incompliant person. This problem occurs due to the fiduciary duty, contract issues or legal
issues or a breach of duty in other jurisdiction. The review panel has to resolve such problems in con-
junction with the FI?
The fact that the Government of Liechtenstein itself is permitted to establish the review panel is a sig-
nal of trust from HMRC. As well as making decisions in case of termination of client relationship, the
panel is an important contact institution for financial market participants. Furthermore, the panel plays
an important role in the analysis of audit reports.
2.3.3.8 Schedule 6: Audit Procedure
The compliance of FIs regarding the taxpayer assistance and compliance programme is audited by an
independent auditor."?^ Banks and trust companies listed in an appendix of the MoU (“the A List”) are
19 Memorandum of Understanding, 2009, schedule 4, no. 4 & 5.
200 Memorandum of Understanding, 2009, schedule 4, no. 6.
21 HMRC, LDF FAQ, March 2013, sec. 3.12.
?? Memorandum of Understanding, 2009, schedule 5, no. 1.
?? Regierung des Fürstentums Liechtenstein, 2012.
?" Memorandum of Understanding, 2009, schedule 5, no. 3 & 4.
?5 Memorandum of Understanding, 2009, schedule 6, no. 1.
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