The government has been criticised over an “historic” agreement that will see billions of pounds of unpaid tax written off.
Yesterday the coalition announced a new deal that will see the Swiss government levy tax on money held in Swiss bank accounts by UK citizens.
It is the first time money in these accounts will have been subject to tax – but it will attract a rate much lower than that charged in the UK.
The money will be taxed at a rate of between 19 and 34 per cent. An annual charge will also be made from 2013.
Meanwhile the deal allows the account holders to retain their anonymity – essentially admitting that the UK will never get the money it is owed.
Last week it was announced that hundreds of plumbers were facing investigation and prosecution over sums much smaller than those thought to be held in many of these bank accounts.
HMRC’s Dave Hartnett insisted that the Revenue will “secure significant sums of tax that some thought we would never see.”
But Tax Justice Network founder Richard Murphy said the deal was “very obviously designed to help tax evaders.”
In a blogpost he said: “We have to conclude that this is not a move against tax evaders – all of whom will be laughing themselves silly about how easy it is to get around the Swiss deal.”
