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| Version 2 | Version 3 |
|---|---|
| UK signs Liechtenstein tax deal | UK signs Liechtenstein tax deal |
| (40 minutes later) | |
| The UK has signed a breakthrough deal to recover lost tax from Britons holding bank accounts in Liechtenstein. | |
| HM Revenue & Customs (HMRC) has agreed with the Alpine tax haven to start exchanging information. | HM Revenue & Customs (HMRC) has agreed with the Alpine tax haven to start exchanging information. |
| Up to 5,000 British investors are thought to have an estimated £3bn in secret accounts in the country. | Up to 5,000 British investors are thought to have an estimated £3bn in secret accounts in the country. |
| Investors will be offered the chance to volunteer details of their deposits in return for penalties, capped at 10% of tax evaded over the past 10 years. | Investors will be offered the chance to volunteer details of their deposits in return for penalties, capped at 10% of tax evaded over the past 10 years. |
| HMRC said that those who failed to make a full disclosure would have their accounts closed down and risk losing all their savings. | HMRC said that those who failed to make a full disclosure would have their accounts closed down and risk losing all their savings. |
| "Those who have been evading UK tax on assets held in Liechtenstein banks must now settle with us. There are no alternatives," said HMRC permanent secretary for tax, Dave Hartnett. | "Those who have been evading UK tax on assets held in Liechtenstein banks must now settle with us. There are no alternatives," said HMRC permanent secretary for tax, Dave Hartnett. |
| Treasury minister Stephen Timms added that the agreement was "very good news for honest taxpayers and investors everywhere", saying it represented "a big step forward for tax transparency". | Treasury minister Stephen Timms added that the agreement was "very good news for honest taxpayers and investors everywhere", saying it represented "a big step forward for tax transparency". |
| Pressure | Pressure |
| Liechtenstein was once seen as one of the most secretive jurisdictions, favoured by the wealthy looking to shelter money from their own tax authorities. | Liechtenstein was once seen as one of the most secretive jurisdictions, favoured by the wealthy looking to shelter money from their own tax authorities. |
| People with money hidden in Liechtenstein should come clean now Chas Roy-Chowdhury, ACCA | |
| However, it came under pressure last year after the German government obtained a list of wealthy Germans with money stashed away. | However, it came under pressure last year after the German government obtained a list of wealthy Germans with money stashed away. |
| More generally, pressure has mounted on tax havens to share information since April's G20 Summit and similar deals have already been struck with the US and Germany. | More generally, pressure has mounted on tax havens to share information since April's G20 Summit and similar deals have already been struck with the US and Germany. |
| "People with money hidden in Liechtenstein should come clean now," said Chas Roy-Chowdhury of the ACCA accountancy body. | |
| "This is their last and best chance; the world is going to get tougher for them, and they are going to be caught out," he warned. | |
| Miscreants who confess will find the cash they have to hand over to HMRC will not be limited to just the penalty of 10%. | |
| They will have to repay all the tax they should have paid in the first place, up to 10 years. | |
| And they will also have to pay interest, which could turn out to be worth far more than the formal penalty charge. | |
| Squeeze | |
| Governments are particularly keen to trace and recover unpaid revenues as tax receipts fall in the global recession. | Governments are particularly keen to trace and recover unpaid revenues as tax receipts fall in the global recession. |
| In April, the UK government launched a second push to squeeze millions of pounds in unpaid tax from UK citizens with offshore accounts. | |
| It has already signed agreements with tax havens such as Jersey, Guernsey, Isle of Man, and the British Virgin Islands to allow the exchange of financial information on UK residents. | It has already signed agreements with tax havens such as Jersey, Guernsey, Isle of Man, and the British Virgin Islands to allow the exchange of financial information on UK residents. |
| The Revenue's first disclosure campaign in 2007 raised £450m from 45,000 people. | |
| That targeted offshore accounts held by the customers of the UK's big High Street banks. | |
| "Tax havens are being squeezed by the larger economies such as the USA and the UK," said Mr Chowdhury of the ACCA. |