Swiss bank accounts: HMRC continues to flex muscle as 6000 get a phone call |
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| Tax | |
| Written by Gary Howes | |
| Wednesday, 30 November 2011 | |
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6000 receive phone calls as the Revenue flexes its muscles over undeclared overseas bank accounts. Switzerland's banking industry risks losing out on almost £35bn in assets as new tax accords with Britain and Germany prompt wealthy clients to withdraw money, according to a new study. The country's banks, which have historically been a home for wealthy people looking for lower tax rates, also face missing out on about Sfr1.1bn in annual revenue from managing the offshore assets because of tax agreements that come into effect in 2013. Under those agreements, struck earlier this year, Britain and Germany will secure revenues from taxes on investments and capital gains held in offshore accounts with Swiss banks, writes The Telegraph. In order to get hold of the money, HMRC has had to shop around. Judith Gardener, personal tax consultant at Taxback.com, says: “Up to 6,000 Swiss bank account holders who are resident in the UK have been contacted by HMRC in recent weeks, as the Revenue flexes its muscles over undeclared overseas bank accounts. “There are already said to be around 500 serious fraud and criminal investigations underway and the new Offshore Co-Ordination Unit will continue to actively identify and pursue those individuals they suspect of hiding their income and capital in offshore tax havens. “Taxback.com recommends that people seek specialist tax advice before responding to the letters, as some recipients may have no additional liability due to their tax status or because they have declared their offshore income already.” “We believe that HMRC will be seeking written confirmation of what the individual intends to do. Most individuals will have three options: confirming that they do not owe any tax because they are non-UK domiciled; making a disclosure under the Liechtenstein Disclosure Facility (LDF) or making a disclosure, but not under the LDF. “We believe this is just the first stage in the process of coming to an agreement with HMRC as to their liability, so it is important that individuals make the right choice at this stage. “Anyone with significant liabilities should consider using the LDF as this will preclude any criminal investigation and reduces the years that HMRC will assess and the penalties imposed.”
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