The FT has reported that:
The world’s leading private banks could be facing an international government crackdown on tax evasion.
Matters could escalate this month. Pressure, led by Germany, to tighten the EU’s savings tax directive could remove the loophole enabling income to remain untaxed if held by a company, rather than an individual. The loophole has led many wealthy account holders, assisted by their banks, to move assets into company names.
Such signs of a crackdown have reinforced warnings that the traditional offshore private banking model, in which wealthy individuals hold assets in secret, and often undeclared, accounts in centres such as Switzerland, may struggle to survive.
This is something we have long campaigned for. It’s overdue to happen. The role of the world’s leading banks in promoting tax evasion has to be stopped. The free-riding of their clients on the back of the majority of the world’s population has to end. Now is the best opportunity we have had to achieve these goals. I know Germany intends to be robust. Let’s hope it succeeds.
2 Comments
If Germany wants to review the ESD, it will have to bring Switzerland to the table. That is not going to happen overnight.
Since the ESD is due to be reviewed in 2011, it’s strategy might be to plant the seeds of change now for a smoother revamp in 2011.
But I do not think things will substantially change until 2011.
The EUSD is not review does not need to wait until 2011. Clause 18 of the directive clearly states review and new proposals will be made every three years, i.e. in 2008. Switzerland signed onto the directive, including the review clause. Here you can see the amount of work the EU Commission is doing to amend the directive this year.
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