The tax disclosure program, Liechtenstein Disclosure Facility was introduced in September 2009 to help UK citizens to legitimize their past tax affairs and ensure that they are tax-compliant for the future.
Under the original timescale to end the program by March 2015, HMRC had expected to earn GBP3 billion from the LDF.
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As a result of LDF, there have been 2,000 disclosures so far, 700 of which were recorded in the last seven months.
UK taxpayers who take part in the LDF can decide whether to pay a single one-off rate of 40% or to calculate actual liability on an annual basis.
Moreover, a 10% fixed penalty applies on the underpaid liabilities but the assessment period is limited to 1 April 1999. Volunteering themselves to HMRC can help the tax evaders levy fines amounting to 200% of their unpaid tax, plus back-taxes and interest.
As many as 5,000 British investors are understood to hold an estimated GBP3 billion in accounts in Liechtenstein.
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By GlobalData"This government is committed to ensure that offshore income is properly taxed. The determination of the government of Liechtenstein to deliver tax transparency by expelling undeclared assets from their country does it enormous credit", Exchequer secretary David Gauke remarked.
HMRC has also introduced a double taxation agreement with Liechtenstein, which will implement new laws ensuring exchange of information arrangements.
