Tax deal with Swiss banks agreed by UK authorities

dipsydoodle

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Wed Aug-24-11 01:10 PM
Original message

Tax deal with Swiss banks agreed by UK authorities

Source: BBC News

The Swiss government has agreed to tax money held by UK citizens in Swiss bank accounts for the first time, while still hiding their identity.

The deal could see between £3bn and £6bn a year being handed to HMRC by the Swiss authorities.

The agreement is the latest part of HMRC's efforts to track down and tax money hidden in offshore bank accounts.

It follows a similar deal agreed earlier this month between Germany and the Swiss authorities.

Read more: http://www.bbc.co.uk/news/business-14649194

Odd that the US has yet to do the same. :shrug:

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valerief

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Wed Aug-24-11 01:23 PM
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1. You mean the biggest-crooks-in-the-world U.S.? No surprise. nt

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closeupready

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Wed Aug-24-11 02:48 PM
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2. Many will simply move their money to other tax havens.

Switzerland is a tax haven, but hasn't been a premier one for a number of years now anyway, so this move will have limited impact, IMO.

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muriel_volestrangler

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Thu Aug-25-11 04:08 AM
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3. A bargain for the rich: they will legally pay less tax than they would in the UK

From the agreement:

Final withholding tax for the future: Future investment income and capital gains should be directly covered by a final withholding tax. The tax rate has been set between 27% and 48%, depending on the category of capital income. The tax rates are slightly under the regular marginal UK tax rates. The final withholding tax is a tax at source. After it has been paid, the tax obligation towards the country of domicile will generally have been fulfilled.

http://www.sif.admin.ch/00488/index.html?lang=en&msg-id=40731

So if you're a higher rate tax payer, it seems it's now worth keeping your money in Switzerland rather than the UK, not to hide it, but because the UK government has agreed you should pay less tax there, by law.

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