UK expects to raise £3 bn from Liechtenstein tax disclosure
13 Jun 2012
The UK tax department, HM Revenue and Customs (HMRS), expects to recover £3 billion from the country's tax evaders under the Liechtenstein disclosure facility (LDF) by 2016, a three-fold increase from the originally anticipated £1 billion, an HMRC release said.
Britain and Liechtenstein signed a comprehensive double-taxation convention on Monday, enhancing the cooperation between the two countries in the field of taxation. Both the sides have also signed a third joint declaration on the LDF.
The treaty was signed by David Gauke MP, exchequer secretary to the treasury and Klaus Tschutscher, the prime minister of Liechtenstein.
Liechtenstein, the small double-landlocked Alpine monarchy has long been a tax haven for many European investors, and remained the only country in the European economic area where the UK did not have a tax treaty.
''The Government is determined to clamp down on tax avoidance at home and abroad,'' David Gauke said.
''This new treaty and the existing disclosure facility show that the net is closing on those who try to evade their UK tax liabilities by using offshore structures - there are fewer and fewer places to hide,'' he further added.
