Each of the Governments in the Isle of Man, Guernsey and Jersey have signed a Memorandum of Understanding (MOU) with HMRC which provide for separate voluntary disclosure facilities (the Facilities), that HMRC will make available to UK taxpayers from 6 April 2013 to the end of 2015. The Facilities are identical and they also have a number of similarities, but some important differences, to the UK’s Liechtenstein Disclosure Facility (LDF). The Facilities provide for taxpayers with a financial interest in the Crown Dependencies to come forward and regularise their affairs in a controlled manner.
The Disclosure Facilities will close to new registrations after the end of 2015. A tougher “last chance” disclosure facility will be offered between 2016 and mid 2017, with penalties of at least 30% (instead of 10% in the LDF) and no guaranteed immunity from prosecution. This coincides with the provision of tax information under the Inter-Governmental Agreements (IGAs) in 2016 and the Common Reporting Standard from 2017. We expect that when all facilities expire HMRC will intensify the number of investigations and those who have not disclosed will be penalised heavily, including criminal prosecutions in appropriate cases.