HMRC reveals UK-Liechtenstein tax haul
The government's tax agreement with Liechtenstein has already pulled in £363 million after more than 2,400 people came forward to disclose unpaid tax under the scheme, HM Revenue & Customs (HMRC) has said.
Based on the current number of disclosures, the Liechtenstein Disclosure Facility (LDF)is now expected to bring in £3 billion by 2016, according to the tax authority.
Secured in 2009, the deal between UK and Liechtenstein governments allows taxpayers to settle their liabilities on favourable terms.
Today UK and Liechtenstein will sign a double taxation agreement that will remove obstacles to investment and other cross-border economic activity.
They will also sign an agreement on cooperation over tax matters, which will make available a single charge rate of 50 per cent that Liechtenstein investors might apply to calculate undisclosed UK tax liabilities for the tax year 2010/11.
HMRC boss Dave Hartnett said: "HMRC originally estimated the number of people who would register for the disclosure facility at 2,000, and that it would probably produce £1 billion.
"In light of the ongoing success of the LDF we now anticipate the arrangements will produce up to £3 billion from a much larger number of people."