HMRC in Tax deal with Swiss banks

HMRC in Tax deal with Swiss banks

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The BBC website has a story about the tax deal HMRC has done with Swiss banks, but I can't find anything about it on HMRC website. Anybody else seen it?

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
25th Aug 2011 10:18

Heard it too - we're on the case

As the CIOT put it, the net has been closing in on those who try to keep assets in offshore Swiss bank accounts. One of our team is following up the story as I type and I'll include a link when the story is done.

To tide things over until then, here are some extracts from the CIOT's comment on the situation, Pragmatic trade-off may work:

The UK Government and Swiss Government have each got something out of the deal announced today, says the Chartered Institute of Taxation (CIOT).

Under the deal, Britons with money in Swiss bank accounts will have a one-off charge of between 19 and 34 per cent of their account balance taken by their bank and given to the UK taxman in 2013. There will then be a high annual ‘withholding tax’ deducted from interest, dividends, other income and capital gains in future years.

Gary Ashford, who represents the CIOT on the Compliance Reform Forum, commented: “Rightly, the net is tightening on those who think they can keep money in offshore bank accounts out of sight of the taxman.

“It is important to realise that innocent taxpayers who have always properly reported their Swiss income are at risk here. They will need to make a further disclosure to avoid the deduction from their account balance in 2013.

“The rate of withholding tax being charged is high. There is clearly a risk that account holders will move their money to even more distant and inaccessible locations, which is in neither government’s interests. Swiss banks and HMRC alike will be hoping this has all been pitched at the right level.”

The Liechtenstein Disclosure Facility continues to be available to Britons with offshore accounts, he added.

Notes

There are three elements to the deal outlined today –Britons with money in Swiss bank accounts will have to pay a one-off charge of between 19 and 34 per cent of their account balance to the UK taxman in 2013. The payment will be deducted and made by the bank. Details of individual accounts will not be revealed but account holders will get certificates stating they have paid the charge.  If account holders believe they are being overcharged tax they will be able to claim the difference back from HMRC, but will have to open up their accounts to HMRC to do this. This levy can be avoided by the taxpayer making a full disclosure to HMRC and settling all taxes.From 2013, a ‘withholding tax’ of 48 per cent of the interest they earn, 40% of dividends, 48% of other income or 27% of capital gains will be deducted automatically by the bank and sent to HM Revenue and Customs annually. Again, details of individual accounts will not be revealed but account holders will get certificates stating they have paid tax on the interest/dividends/capital gains from their deposits.The UK Government will be able to request bank account details for up to 500 people a year from Swiss banks, who will be required to disclose the information.

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Teignmouth
By Paul Scholes
25th Aug 2011 14:09

One rule for them etc?

So the wealthy money launderer, drug dealer, terrorist, or people trafficker only have to pay a % of their proceeds of crime whereas the rioters & social security cheats have to pay all their proceeds back plus go to prison....is this a fair deal or is the UK Government just grabbing £5Bn & running, turning a blind eye to where the money came from and whose name is on it.

The US on the other hand are going directly for the banks and their clients.

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