Amnesty - is that all there is ?

To the dulcet tones of Peggy Lee, the snappily titled Offshore Disclosure Facility (ODF) is finally launched. Ooh, the excitement.

So what’s on offer (pun intended) ? In terms of the headline arithmetic, the Revenue are committing to a 10% penalty weighting, which gives the average punter a saving of around 10% to 20% when compared with prevailing penalty rates in the average type of circumstance which seems to be envisaged by the amnesty. Although, this does, of course, rather take it for granted that the wrongdoer will be caught by the Revenue rather than volunteer himself, in which case a 10% penalty weighting, or possibly less, would not be unheard of anyway where only minor transgressions were involved.

So, where are the catches ?

Firstly, the ODF can only be used by those with an undisclosed offshore account (strictly, this should be an offshore account in which the income or gains are undisclosed, but let us not get picky).

Secondly, any disclosure of offshore interest liabilities must be accompanied by a disclosure of all undeclared UK tax and duty liabilities (including those wholly unconnected with any offshore bank account).

Thirdly, and now it gets juicy, the disclosure must be accompanied by a declaration of full disclosure; the scope of which is seemingly intended to extend to the entirety of the taxpayer's affairs during the last 20 years (crikey, Batman, brown trousers all round).

So, to whom exactly is ODF going to appeal to, and what are the Revenue and Treasury really up to ? After all, lest us not forget that not all personnel in these departments are as thick, and as thick skinned, as Red Dawn; there are some that can do joined up writing and lots more besides.

Doubtless, there are those individuals with an unremarkable financial profile but whom have parked a relatively small sum in, for example, a Jersey high interest cheque account (untraceable credit card anybody ?), have since lost their nerve and want to come clean. One supposes and, indeed, hopes, that these types do not trouble with professional advisers and will decide under their own steam whether it is worth availing themselves of ODF. If so, good luck to them; the ODF would seem well suited.

But what of those who have habitually “tweaked” their fiscal affairs, and perhaps, those of their companies etc., a bit of a wheeze here, a bit of a scam there ? Some dodgy invoicing, an Uncle George trust, perhaps hiding that cash from the soon to be ex-spouse and the upcoming ancillary relief settlement ? Experience shows that even the most skilled of advisers can take many months to unpick the bones of such a situation, collate the documentation, consider the wider technical issues and advise over the ramifications of full disclosure (even when they have the advantage of SCIO wielding a very big stick over the client). Are such [non] taxpayers seriously expected by the Revenue to avail themselves of ODF ? One has to think not; even with the trailing of the launch of the initiative for six months already, surely the Revenue is not expecting many of these types to raise their head above the fence in a timeframe of merely nine weeks ?

So, at first blush, is it cynical to venture that the Revenue now holds too much offshore account information for it to process in its current form, and has designed ODF merely to weed out the minnows in the hope that the Revenue can then increase their chances of nailing the bigger offenders ?

Lastly, there is no sign of OFD-ers being awarded a commemorative t-shirt emblazoned with the legend, "I've paid my fair share". An opportunity missed, methinks.