After discussions with the client we decided to have a "no names” discussion with HMRC under the terms of the Liechtenstein Disclosure Facility (LDF). HMRC confirmed that as the account had not been opened via a UK branch or agency of the Swiss bank, and assuming an asset qualifying for a "Confirmation of Relevance” was established in Liechtenstein by 5 April 2016 the tax liabilities would be restricted to the period from 6 April 1999. Importantly, HMRC agreed that the Inheritance Tax was not due from the father's estate as it had arisen prior to 6 April 1999.
The limitation of liabilities to the period from 6 April 1999 under the Liechtenstein Disclosure Facility (LDF) resulted in a £1m tax saving when compared with the liability which would have arisen under normal rules.
If the client's circumstances had been different such that he fell within HMRC's criminal prosecution criteria he would have received a guaranteed immunity from prosecution for tax offences under the LDF.