Pictured above: Jeff Millington

Jeff Millington, senior tax manager at Midlands based BTG Tax, part of Begbies Traynor Group, analyses the latest tax haven to throw in the towel.

The net is closing on those who have secretly salted cash away in Liechtenstein.

But is there now one law for the very rich and another for the ordinary man in the street?

And is there one law for the Liechtenstein evader and another for tax dodgers in other havens?

It follows the move by the country to sign an agreement aimed at uncovering the finances of an estimated 5,000 British investors with secret bank accounts there.

It gives Britons five years from 2010 to declare their assets in the tiny Alpine principality and receive favourable treatment in paying the taxes they owe. The penalties for those who are found to have evaded taxes will be capped in some circumstances at 10 per cent of the full amount.

The deal is the latest UK amnesty amid a global crackdown on offshore tax dodging.

Running parallel with it is a further "New Disclosure Opportunity" (NDO) relevant to everyone in the UK holding offshore accounts. It offers them the possibility of significantly reduced penalties, also 10 per cent, together with payment of the taxes and duties underpaid and associated interest. Notification of the intention to make a disclosure must be made by November 30. 

The approach echoes HM Revenue & Customs' 2007 tax amnesty, which was introduced following its issue of formal notices to five major banks calling on them to hand over details of offshore account holders. The amnesty was so successful in terms of tax yield - approximately £440 million - that it caused HMRC to consider issuing similar notices to smaller financial institutions, thereby leading to this latest NDO. HMRC has said that the tax yield from this new initiative could amount to over £500 million over four years.

It is thought HMRC has now obtained authority to demand information from approximately 300 banks seeking details of UK resident taxpayers with offshore accounts.

This is the last chance to come clean, it insists.

Both amnesties run from September 1 but the Liechtenstein one is the more generous.

The historic agreement means that Liechtenstein will start exchanging information with the UK.

HMRC believes that in Liechtenstein alone British investors have stashed an estimated £3 billion in hidden accounts. 

Although Liechtenstein will not disclose any client data under the deal, it will close down any accounts where a full disclosure is not made under the agreement.

It will require all Liechtenstein intermediaries to identify their clients who need to disclose a tax liability to the UK and order them to act within an agreed timeframe. If they fail to do so, Liechtenstein has agreed to withdraw its services to that individual.

HMRC has made three major concessions:

• It has granted individuals taking advantage of the amnesty immunity from prosecution.

• A person who has something to disclose has until March 31, 2015 to reveal all.

• No one will be liable for anything owed to the UK tax authorities before April 5, 1999, a maximum of 10 years.

Recalcitrant investors who don't own up face a 20-year probe of back assets, being the full extent legislation allows.

HMRC has stated it will pursue those who fail to make a disclosure. For those individuals concerned, it will charge a minimum penalty of 30 per cent and has not ruled out criminal proceedings, where it believes serious fraud has been committed.

So, it would take either a brave or foolhardy person to ignore everything and await the inevitable future call from HMRC.

But how fair is all this?

The disparity of treatment is stark.

The Liechtenstein deal offers account holders the opportunity to settle any unpaid tax with only a 10 per cent penalty and going back only as far as 10 years. In contrast, the NDO is asking UK taxpayers with investments in other offshore jurisdictions to declare unpaid tax as far back as 20 years. In some cases they may also have to pay a 20 per cent rather than a 10 per cent penalty.

Yet Dave Hartnett, HMRC Permanent Secretary for Tax, has previously stated that all taxpayers are treated fairly and consistently.

It would appear, however, that this statement is clearly inequitable for the vast majority without the wealth to invest in Liechtenstein. 

Without doubt these two disclosure opportunities will be the last chance for UK residents to come forward voluntarily to receive favourable treatment.

Earlier this year, Liechtenstein's government agreed to start co-operating with other nations on tax matters and has since signed deals with the United States and Germany aimed at exposing tax evaders.

It had been under intense pressure since Germany obtained confidential data on LGT, the country's largest bank, with names of German citizens hiding money in the state, wedged between Switzerland and Austria.

Germany has accused Switzerland and Liechtenstein of actively encouraging Germans to dodge taxes, estimating the annual loss to government coffers from tax evasion at around £100 billion.

Facing a crackdown on tax evasion by G20 countries, Liechtenstein and Switzerland - along with several other offshore centres - agreed in March to relax their strict bank secrecy and embrace tax co-operation rules set by the respected Organisation for Economic Co-operation and Development.

Liechtenstein was previously on the OECD's "black list" of unco-operative tax havens.

But, along with Andorra and ­Monaco, all three countries were removed from the list in May after committing to adopt OECD standards.

Liechtenstein is also starting negotiations with Britain on a double taxation agreement.