© Ithica Publishing Services
A recent deal agreed by the UK Treasury and the Swiss authorities is a body blow for the wealthy.
Historically Switzerland has always provided a safe and secure haven and privacy for depositors.
However UK residents with funds in Swiss accounts are facing tough decisions following the latest crackdown on offshore tax evasion.
Now it seems as though the one place that the wealthy thought they could rely upon to put their money beyond the reach of the taxman is no longer secure.
Our understanding is that the UK Treasury have secured a “Catch 22” provision whereby depositors will be forced to declare their assets. They have until 2015 to make a declaration and then have to pay 10% of their as a one off penalty.
Or make no disclosure and then have to pay up to 34% of their assets and face the possibility of a tax enquiry. It is of course possible for depositors to move their money elsewhere, should they do so they may have their private information and details of their holdings passed to the Treasury.
This will end the long standing evasion of tax by those attempting to conceal their assets using Swiss secrecy laws. It is likely to secure billions of pounds of unpaid tax for the UK Treasury from 2013 onwards.