David Jetuah, Accountancy Age, Friday 20 August 2010 at 16:04:00

HMRC has generated 89m through New Disclosure Opportunity and Tax HealthPlan


The taxman has dredged up 89m of previously undeclared tax through twoamnesties allowing those with hidden offshore accounts to come forward.

Law firm McGrigors found that HM Revenue & Customs generated 89m fromthe New Disclosure Opportunity and the Tax Health Plan.

The first amnesty, called the Offshore Disclosure Facility, generated 450min 2007.

but the taxman has also opened up be taken compared to 450m from the UK?sfirst ever tax amnesty ? the ? in 2007, says McGrigors, the leading commerciallaw firm and tax investigation specialists.[1]

According to the data, the NDO yielded 82m from approximately 5,500disclosures ? an average of 14,500 per disclosure.

The THP yielded about 9m from approximately 1,500 disclosures ? an averageof 6,500 per disclosure, McGrigors said.

The firm believed the "failure" of HMRC to punish tax evaders after its firsttax amnesty in 2007, and the perception among taxpayers that there will befurther tax amnesties, has undermined the response to the NDO and the THP.

Phil Berwick, director of tax investigations at McGrigors, comments: ?Thesefigures will be hugely disappointing for HMRC. With every amnesty there seems tobe diminishing returns. These two amnesties brought in less than 20% of the cashof the first one.?

?With each disclosure facility HMRC gathers information on taxpayers, butthere have yet to be any prosecutions at all of tax evaders who failed torespond to the first amnesty in 2007. It?s one of those rare occasions whereHMRC can be criticised for being all carrot and no stick.?

Howver, the Liechtenstein Disclosure Facility, widely regarded as thetaxman's most ambitious project, has had more than 700 people coming forward topay their undeclared liabilities and runs until 2015.

The taxman is hoping undeclared offshore account holders will identifythemselves as key legislation comes into effect in Liechtenstein later thisyear.

Further reading:

Video:Does HMRC still have teeth on tax amnesties?

Liechtensteinamnesty users top 700 says taxman