Registration with LDF on the Rise
LDF has been launched by HMRC to help the UK taxpayers to make appropriate disclosures. LDF has been introduced to encourage UK taxpayers to declare their investments in Liechtenstein so that they can keep their tax records clean and updated.
LDF has also come up with certain features which would prove beneficial to the people registering with it. It has decided not to penalize in case of an innocent error. The period of assessment is limited to accounting years commencing from April 01, 1999. There is also only a single point of contact for disclosures. Apart from this the tax payers have an option to pay actual liability calculated on an annual basis or to pay a single composite rate of 40 percent, whichever is convenient.
It has been reported that registrations with LDF has increased significantly since the LDF was introduced. It was reported to be more than 419 in March 2010 and this figure is expected to be even more once new report is published by the HMRC in October 2010.
Andy Cole, the director of operations, stated that although there is a lot of commotion regarding numbers but in reality it would not be proper to compare the LDF with ODF and the NDO. Both the Offshore Disclosure Facility (ODF) and the New Disclosure Opportunity (NDO) being more industrialized had a high volume but the LDF focuses on low value accounts so the increase in its numbers is quite acceptable.
It is reported that Andy Cole is satisfied in the manner things are shaping and looking up for the LDF. He said he was confident that it would be able to achieve its target to net one billion pounds on the date of its closure which is scheduled in the year 2015.