Wealth management firm Kaiser Partner has highlighted the relevance of the Liechtenstein Disclosure Facility (LDF) for UK individuals in Singapore.
The LDF was introduced in 2009 to help UK taxpayers with undeclared investments in Liechtenstein to come forward and get their past and future tax affairs settled.
Over 100 private client professionals gathered in Singapore earlier this week to hear Kaiser Partner board‐member Philip Marcovici discuss the benefits of this scheme for UK individuals.
Marcovici said: “The Liechtenstein Disclosure Facility is, in most cases, a UK taxpayer’s “best deal”, with low tax and interest costs combined with protection against criminal proceedings.”
Marcovici explained that not all funds or structures need to be moved to Liechtenstein to take advantage of the facility in relation to global assets and income, which makes the arrangement attractive to Singapore banks and trust companies as well as their clients.
He added: “We are experiencing a global sea change in enforcement and attitudes associated with undeclared funds. Singapore’s move to “all‐crimes” anti‐money laundering legislation is but one of many global developments that are forcing the wealth management industry and its clients to come to grips with tax compliance.”
According to Kaiser Partner, unlike other tax compliance vehicles, the LDF both significantly reduces financial penalties and provides assurances against criminal investigation.
It adds that LDF is effective even in complex situations where assets are held in trusts or foundations, where assets or family members are located in multiple jurisdictions, where wealth is inherited or when tax obligations have changed over time.
Private Banker International recently reported that the LDF will be extended until 5 April 2016 as the number of disclosures has exceeded the UK’s government expectations.