The mention of Swiss bank accounts conjures up images of criminals and the super-rich squirrelling away vast amounts of money, anonymous, safe and tax-free, but a new agreement between the UK Government and Switzerland will mean that tax evaders can no longer hide behind Swiss banking secrecy.
The Government plans to tackle offshore tax-evasion will kick off in 2013 and is expected to bring in billions of pounds of unpaid taxes to the UK.
David Gauke, Exchequer Secretary to the Treasury, said: "This historic agreement will enable us to collect billions of pounds from those who have for too long evaded their responsibility to pay UK tax by abusing Swiss banking secrecy. The message is clear: there is no hiding place for tax cheats."
The agreement will mean that UK taxpayers who currently hold funds in Swiss bank accounts will face a significant one-off deduction between 19% and 34% to cover past unpaid taxes. This will not apply to those who have already paid taxes.
This deduction will apply to accounts that were open on 31 December 2010 and are still open on 31 May 2013. It will cover income tax, capital gains, inheritance tax and VAT liabilities in relation to the accounts.
If the account holders ask the Swiss banks to disclose all details to HMRC, they will not be subject to the deduction. But disclosure means that HMRC will be able to work out any dues for unpaid taxes.
Also, from 2013 Swiss banks will charge a withholding tax of 48% on investment income and 27% on gains. Swiss banks will also end their tradition of banking secrecy and will share information, for example on undisclosed earnings, with HMRC.
Coinciding with this agreement is the creation of the Liechtenstein Disclosure Facility, a team of investigators dedicated to catching individuals hiding money abroad.
George Osborne, Chancellor of the Exchequer, said: "Tax evasion is wrong at the best of times, but in economic circumstances like this it means that hard-pressed law-abiding taxpayers are forced to pay even more. That is why this Coalition Government made it a priority to go after those who don't pay their fair share.
"We will be as tough on the richest who evade tax as on those who cheat on benefits. The days when it was easy to stash the profits of tax evasion in Switzerland are over."
Sourece
The Government plans to tackle offshore tax-evasion will kick off in 2013 and is expected to bring in billions of pounds of unpaid taxes to the UK.
David Gauke, Exchequer Secretary to the Treasury, said: "This historic agreement will enable us to collect billions of pounds from those who have for too long evaded their responsibility to pay UK tax by abusing Swiss banking secrecy. The message is clear: there is no hiding place for tax cheats."
The agreement will mean that UK taxpayers who currently hold funds in Swiss bank accounts will face a significant one-off deduction between 19% and 34% to cover past unpaid taxes. This will not apply to those who have already paid taxes.
This deduction will apply to accounts that were open on 31 December 2010 and are still open on 31 May 2013. It will cover income tax, capital gains, inheritance tax and VAT liabilities in relation to the accounts.
If the account holders ask the Swiss banks to disclose all details to HMRC, they will not be subject to the deduction. But disclosure means that HMRC will be able to work out any dues for unpaid taxes.
Also, from 2013 Swiss banks will charge a withholding tax of 48% on investment income and 27% on gains. Swiss banks will also end their tradition of banking secrecy and will share information, for example on undisclosed earnings, with HMRC.
Coinciding with this agreement is the creation of the Liechtenstein Disclosure Facility, a team of investigators dedicated to catching individuals hiding money abroad.
George Osborne, Chancellor of the Exchequer, said: "Tax evasion is wrong at the best of times, but in economic circumstances like this it means that hard-pressed law-abiding taxpayers are forced to pay even more. That is why this Coalition Government made it a priority to go after those who don't pay their fair share.
"We will be as tough on the richest who evade tax as on those who cheat on benefits. The days when it was easy to stash the profits of tax evasion in Switzerland are over."
Sourece
