HMRC launch Worldwide Disclosure Facility

Posted by admin - September 6, 2016 9:37 am HMRC launch Worldwide Disclose Facility (WDF)

What is it?

The WDF has been introduced by HMRC to ensure that individuals who do not pay outstanding taxes from offshore investments and accounts will face tougher penalties. Individuals should be aware that penalties could now be as much as three times the amount of tax they initially try to evade. In addition, individuals may also face much stricter criminal proceedings.

Under the WDF over 100 countries have committed to exchanging information under the Organisation for Economic Co-operation and Development Common Reporting Standard (CRS) in order to ‘increase international tax transparency’.

New sanctions

From 30 September 2018, new sanctions under Requirement to Correct will be introduced that reflect HMRC’s toughening approach. You will still be able to make a disclosure after that date, but new terms will not be as good as those which are currently available.

What these sanctions mean

The WDF will affect any unpaid tax or omitted tax relating to any of the following:

  • income arising from a source in a territory outside the UK;
  • assets situated or held in a territory outside the UK;
  • activities carried on wholly or mainly in a territory outside the UK.

Disclosures

To make a disclosure you will need to register on the GOV.UK website.

For more help

Further information about the WDF can be viewed here.

Alternatively, contact your local MFW office who will be pleased to offer further guidance.

We have offices conveniently located across Kent in Ashford, Cranbrook, Dover, Herne Bay, Maidstone and Sittingbourne.