Business First Issue2 Vol5:Layout 1 23/10/2009 14:29 Page 5
Influencing Policy
Tax amnesty
Consultations
The Chamber submitted responses to the following consultations:
international
Draft Strategic Energy Framework for northern Ireland (DETI)
In light of changing global and national circumstances and in order to reflect
Tax disclosure initiatives and amnesties have caught the
the priorities of the nI Executive, DETI are seeking to develop a revised strategic
imagination of numerous Finance Ministers over the past few
energy policy position for northern Ireland.
months. Steven Phillips, Grant Thornton's Tax Director
summarises some of these initiatives and explains why the time is
review of the Strategic Investment Board (SIB)
right for those errant taxpayers to bring their perhaps murky tax
Goldblatt McGuigan was appointed by the office of the First Minister and
affairs to order.
Deputy First Minister (oFMDFM) to undertake a review of the effectiveness and
Despite the offshore Disclosure Facility in 2007 the uK Treasury
value for money of the Strategic Investment Board Ltd (SIB) in relation to the
did not benefit from the initiative as much as it had anticipated.
Executive’s priority of growing a dynamic and innovative economy.
Ministers have been persuaded to run a "Mark 2" version of the
initiative entitled the "new Disclosure opportunity" (nDo). on
Events
this occasion the target is specifically the offshore investor and as
a precursor to the facility HM revenue and Customs has gained
The following events have recently occurred access to information held on uK resident account holders by
• nICC event with organised Crime Task Force took place on 08/09/09 over 300 uK and foreign financial institutions.
• The Economic Development Forum (EDF) took place on 17/09/09 The initiative opened on 1 September and the notification
• An In Camera Dinner with the minister for Employment and Learning, Sir reg
period runs until 30 november 2009. After that the actual
Empey, took place on 17/09/09
disclosure forms must be completed and submitted in paper
• CSAF Sub Committee: Employment and Skills meeting took place on
form by 31 January 2010 or online by 12 March 2010. The tax
01/10/09
liabilities, interest and penalties must also be paid by the 31
• The Economist Forum Meeting, on the Independent review of Economic
January or 12 March 2010 dates depending on whether the
Policy, took place on 09/10/09
disclosure is via paper or online.
(For further information on the above please contact
HM revenue and Customs is heralding this opportunity as the
christopher.morrow@northernirelandchamber.com)
last chance for offshore account and asset holders to come clean.
The penalty on offer for those who do disclose now is 10% which
In Camera: Sir reg Empey, Minister for Employment & Learning
is the same as for the 2007 initiative. However, where individuals
The northern Ireland Chamber of Commerce welcomed the Minister for
had the opportunity to disclose in 2007 and chose not to, the
Employment and Learning, Sir reg Empey to its ‘in camera’ business dinner at the
penalty now will be 20%. once this facility closes the penalties for
Holiday Inn Belfast on Thursday 17th September.
future disclosures will be significantly higher. So this is a carrot
Members were given the opportunity to network and engage with the Minister
and stick approach. one criticism of this new opportunity is that it
about current employment issues and the challenges facing northern Ireland
is restricted to liabilities arising from offshore accounts and assets
businesses in 2009. Areas covered included support for students and
unlike the 2007 scheme which welcomed disclosures of any past
apprentices, Management and Leadership skills and the development of a higher
tax irregularity going back 20 years. This time around other
Education Strategy for northern Ireland.
disclosures have to be made separately albeit to a dedicated
office.
northern Ireland Chamber of Commerce chief executive, Ann McGregor said:
“We were delighted to welcome Sir reg Empey to our ‘in camera’ business
Time will tell on whether the opportunity is a success from a
dinner. The event provided our members with a valuable networking
Treasury perspective. It apparently has information on over
opportunity and the chance for some open and frank dialogue with the Minister
100,000 offshore accounts and so is expecting a reasonable
in a private setting.
response and, one presumes, a significant influx of funds. To
complicate matters further the Liechtenstein authorities have
“These events continue to prove highly successful with our members, exposing
started a five year programme to assist their Financial Institutions
them to networking opportunities that may not be readily available on a regular
to ensure that their uK customers have complied with their uK
basis.” The Chamber would like to thank sponsors Bank of Scotland (Ireland) for
tax obligations. uK investors, though, do not have to wait until
their continued support with the In Camera series.
contacted by the Liechtenstein institutions but can disclose any
tax liabilities now to a dedicated unit in HM revenue and
The next In Camera event, with Margaret ritchie, minister for Social Customs. The rules for this scheme are different to the nDo
Development, will take place at Ten Square hotel Belfast on Wednesday 11th referred to above and detailed advice should be sought where
november at 12.15pm. Bookings for this event can be made through the nICC appropriate.
website www.northernirelandchamber.com/chamber-diary/68. The uK is not alone of course in their attempts to collect tax
from offshore accounts and assets. our neighbours in the
Independent review of Economic Policy republic have also started an initiative on 1 September 2009 to
The Business Alliance, responding to the publication of the Independent
investigate the tax treatment of property, assets and funds settled
review of Economic Policy have welcomed the publication of the IrEP report.
in offshore trusts and structures. This is linked to a disclosure
The Alliance, representing CBI, Centre for Competitiveness, Institute of Directors
initiative has a very tight timetable with completed disclosures
and the northern Ireland Chamber of Commerce assessed the Executive
required by 31 october 2009. The uS authorities have also
Summary of the review and there is much of the report with which the Business
announced an amnesty for offshore accountholders which runs
Alliance agrees. There are also a number of ideas and recommendations which
until 23 September 2009 and the French Government launched a
need to be assessed in more detail. These include:
partial amnesty for offshore accountholders in April 2009. The Eu
- the consideration of the development of a new institution for commercially-
courts have also recently confirmed that member states have the
orientated research
authority to go back to recover tax due from offshore
- the recommendation that Invest nI should reduce its support for company
accountholders from earlier years without limit in certain
training, though we understand training for innovation related skills will remain
circumstances. This comes about after a Dutch resident
a key priority
attempted and failed to prevent the authorities going back more
- careful consideration must be made of the proposal to phase out all grants to
than five years (their usual domestic limit for recovering back
business which do not relate to r&D and innovation by 2013 – we need to
taxes).
ensure northern Ireland can offer an attractive financial support package
All in all, the spotlight is certainly on the offshore investor. There
within Eu limitations to both retain and attract international investment,
is a concerted effort by the authorities to crack down on tax
evasion through the use of offshore structures and we can expect
particularly as we emerge slowly from recession
that once all the various amnesties and initiatives have run their
Chamber president, Bro McFerran, said “Business will welcome the proposals to course fiscal authorities will seek out those who still hold
create a more entrepreneurial Invest nI with greater freedom and flexibility to undisclosed offshore assets and accounts and use the full powers
deliver programmes in a responsive manner. northern Ireland’s future depends of their civil and criminal code to deal with these cases.
on our agility and responsiveness to opportunities. I particularly welcome the
recognition of the need to professionalise and enhance support for exporting.”
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