Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a519039
Treasury to net billions from crackdown on Swiss bank accounts
by Daniel Grote on Aug 25, 2011 at 07:40
The Treasury has said it expects to recoup billions in unpaid tax after launching a landmark agreement with Switzerland in its crackdown on offshore tax evasion.
Under the terms of the deal, existing funds held by UK taxpayers in Switzerland will be subject to a one-off deduction of between 19% and 34% to settle past tax liabilities. From 2013, a new withholding tax of 48% on investment income and 27% on gains on funds held in Swiss bank accounts will apply.
HM Revenue & Customs has also secured a powerful new information sharing provision, which will allow it to discover more easily which UK taxpayers have accounts in Switzerland. It said the power would go further than the existing double taxation agreement between the UK and Switzerland.
Chancellor George Osborne (pictured) said the move would recover money from '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,' he said. 'The days when it was easy to stash the profits of tax evasion in Switzerland are over.'
David Gauke, exchequer secretary to the Treasury, added: '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,' he said.
News sponsored by:
Today's top headlines
Challenged by growing risk aversion?
Challenging financial markets over recent years have resulted in growing risk aversion among British savers and led many to seek safety in cash. Click here for more.
More about this article:
by Michelle Abrego on Dec 05, 2013 at 16:07