HMRC issues new warning ahead of NDO

Date: 26th August 2009

HM Revenue & Customs (HMRC) has given a further warning about potential implications for businesses and individuals not using the upcoming New Disclosure Opportunity (NDO).

In new comments, Dave Hartnett, the taxation authority's permanent secretary for tax, pointed out the prosecution risks for all of those who do not come forward before the deadline.

To be launched on September 1st, the NDO gives Britons the chance to declare previously undisclosed offshore assets.

Should HMRC be alerted by the taxpayer prior to the March 12th deadline, they will only be fined for ten per cent of the tax they owe.

However, all of those who declare past this date will face a 30 per cent fine and an increased risk of prosecution.

Mr Hartnett said in a new HMRC podcast that, after the current NDO, "there will not be another chance" for people to come forward.

He added: "This time ... we are going to have information from the majority of banks operating in the United Kingdom. So, we're going to have a much bigger database from which to work."

A similar scheme was conducted by HMRC in 2007, raising around £450 million.