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Liechtenstein Disclosure Facility is expected to net up to £3bn, says HMRC

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More than 2,400 people have registered to disclose unpaid tax under the Liechtenstein Disclosure Facility (LDF), HMRC announced. The LDF is now expected to bring in ‘up to £3bn’ by 2016.

A first-time comprehensive Double Taxation Convention between the UK and the Principality of Liechtenstein was signed in London earlier this week. It will enter into force once both countries have completed their legislative procedures.

Together with a new joint declaration on the LDF, the Convention marked ‘a further enhancement in cooperation between the UK and Liechtenstein in the field of taxation’, HMRC said.

Dave Hartnett, HMRC’s Permanent Secretary for Tax, said: ‘The third Joint Declaration recognises the overwhelming success of the LDF. HMRC originally estimated the number of people who would register for the disclosure facility at 2,000, and that it would probably produce £1bn. In light of the ongoing success of the LDF we now anticipate the arrangements will produce up to £3bn from a much larger number of people.’