I should stop blogging on UK - Swiss the tax deal but it's so bad I can't, yet.
Consider this. Under the deal the tax withholding rate to be applied to the accounts of UK taxpayers holding bank accounts in Switzerland who do not want details of their affairs disclosed in the UK will be a few per cent lower than their UK marginal tax rate. But to determine that we will be in the extraordinary position that the Swiss will have to know the full tax affairs of the taxpayer in question: that person will have to make complete disclosure to the Swiss authorities of what their UK income is so that they can decide what tax rate will be due on the witholding even though the UK authorities will be denied that same information.
What this in effect means is that we have now passed control of determination of a UK taxpayer's affairs to the Swiss. That is quite incredible. What HMRC don't know and can't do the Swiss will know and must do.
This is the abandonment of tax sovereignty by the UK.
I sincerely hope someone in Labour is going to make a big fuss about this.
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