TO crack down on offshore tax evasion, the
UK and Swizerland are reported to have struck a major deal. As per the
agreement, the Swiss Banks would pay USD 629 mn to the UK Treasury as compensation
for the failure of its British clients to pay their taxes correctly. The
agreement may come into force by 2013.
It
is also reported that the Swiss banks will levy a withholding tax of 48 per
cent on investment income and 27 percent on capital gains earned by
Britons with offshore accounts.
To
stop new, undeclared funds from being conduited to Swiss Banks, the HM Revenue
would send requests for clients-specific information and the banks would
furnish the same. A maximum of 500 such requests can be sent by the UK in
a year.
The
customer would now have a choice. They can either declare their assets to
the British authorities and pay taxes or they can pay a one-off tax for the
past, but still keep their privacy.
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