Experts from KPMG in the Channel Islands have highlighted how local finance businesses with UK-resident clients can make the most out of HMRC’s Guernsey and Jersey Disclosure Facilities.
Delegates at recent seminars held in both islands heard how the disclosure facilities, which allow tax disclosures to be made in advance of the proposed automatic exchange of information on 30 September 2016, will impact financial institutions in the Channel Islands.
The event was headed up in Guernsey by Tony Mancini, tax executive director at KPMG in the Channel Islands and in Jersey by head of tax John Riva and managing director Jason Laity.
‘While this may appear to be an additional compliance burden, we want to illustrate how there are a number of benefits to these disclosure facilities and how our clients can identify these,’ said Mr Mancini.
‘They allow for a streamlined process to settle outstanding liabilities with HMRC, there are fixed penalties and interest, and the taxpayer is able to settle their affairs with greater certainty. For long-established structures, or those that have undergone changes to their circumstances, this can be a particularly attractive way for UK residents to bring their tax affairs up to date,’ he said.
Mr Mancini was joined at the event in Guernsey by Jim Keys, senior manager of KPMG London’s Tax Investigations team, while his colleagues at the Jersey event were joined by Derek Scott, tax investigations director from KPMG London’s private client team. Both demonstrated how HMRC has made use of the increasing supply of information they are receiving from both the UK and places such as Switzerland and Liechtenstein.
‘Over the next two years financial institutions in the Channel Islands will be reviewing their UK-resident client base as they prepare for UK FATCA and the disclosure facilities present the ideal opportunity to identify, and efficiently rectify, any technical errors and mistakes,’ said Mr Mancini.
‘The expertise we have gained from experience with disclosure facilities in other jurisdictions means we are in a good position to advise local businesses on the process of how any problems can be properly identified and resolved.
‘If this opportunity is leveraged effectively, businesses can ensure that they enter into the UK FATCA-equivalent automatic reporting requirements in 2016 with less concerns about enquiries from HMRC to them or their clients.’
Category: Finance & Business