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Liechtenstein Disclosure Facility could raise pounds 3bn from taxpayers.

UP to pounds 3bn is set to be raised by 2016 from UK taxpayers with money hidden in Liechtenstein, surpassing previous expectations, HM Revenue and Customs (HMRC) said yesterday. More than 2,400 people have registered to disclose unpaid tax since the Liechtenstein Disclosure Facility (LDF) was signed three years ago, with pounds 363m already paid in tax bills.

The revenue body believes the agreement over the tax haven, which was originally predicted to raise pounds 1bn, will produce up to pounds 3bn from a much larger number of people coming forward than previously anticipated.

Some 5,000 Britons are believed to have hidden away money in secret accounts in Liechtenstein and the deal allows investors who are liable to pay UK tax to "legitimise" their past tax affairs.

People who own up to what they have done could face penalties amounting to just 10% of the tax they have evaded, although they will still have to pay back taxes and interest going back up to 10 years.

Tax dodgers who fail to volunteer their actions face much tougher fines amounting to 200% of their unpaid tax, as well as back taxes and interest, and in the most serious cases, prosecution.
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Title Annotation:Business
Publication:Western Mail (Cardiff, Wales)
Geographic Code:4EXLI
Date:Jun 13, 2012
Words:201
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