Liechtenstein to hand over UK tax evaders
Thursday, 13 August 2009 12:00
Over 300 banks have been ordered to hand over details about UK customers who hold offshore accounts to HM Revenue & Customs (HMRC).
HMRC is hunting down tax evaders after an agreement with the government of Liechtenstein was reached this week.
Those with unpaid taxes will be able to settle them now "at a favourable penalty rate" of ten per cent.
But those who do not step forward risk a 30 per cent or higher penalty and potentially criminal prosecution if caught, HMRC said.
Stephen Timms, financial secretary to the Treasury, said: "It is wrong that some people evade paying their fair share of tax by hiding assets in offshore accounts.
"Today's ruling represents real progress in creating a level playing field for all taxpayers."
The government is hoping people will use this 'amnesty' to admit undeclared tax, after a similar campaign in 2007 that targeted five banks.
The deal with the tax haven of Liechtenstein is part of wider war on evasion launched after the G20 meeting in London last April.
Until now, the state has shrouded in secrecy the details of account holders who have hidden cash away from their own governments.
But the breakthrough deal means banks will be forced to hand over the details of an estimated 5,000 UK taxpayers who are thought to have between £2 billion and £3 billion hidden in bank accounts and trusts there.
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