From Hansard:
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer how much tax has been repatriated to the UK by each country adopting the withholding tax option under the EU Savings Tax Directive. [255258]
Mr. Timms: The amounts of tax paid to the United Kingdom by those countries adopting withholding tax under the terms of the European savings directive or equivalent agreements with third party jurisdictions for the years 2005-06, 2006-07 and 2007-08 are set out in the following tables.
The withholding tax regime is a transitional mechanism. The UK strongly supports, and is promoting internationally, transparency through exchange of information as the way forward in combating cross-border tax evasion.
These tables followed:
Plotted after translation into sterling at official exchange rates this looks like this:
The trend is upward.
The culprits are obvious. I have eliminated the small ones for clarity.
And what the heck happened in Switzerland in 2007/08?
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Possibly this is an effect of exchange rate swings, as people rushed for safe havens – including the Swiss Franc?
Alex
amazingly, exchange rates were pretty stable during this period
amusingly, the average exchange rates during 2007/08 for the pound to the dollar was 2.00
Nostalgia eh?
I actually think the Swiss figure represents under declared figures from previous years indicating a low quality of data recording
Richard
Richard
Are you surprised at how low the Luxembourg figures are ? I certainly am.
And why no Cayman on the list ?
looks like BVI and Turks pulling a fast one
Rupert
Q1 – no – they cheat
q2 – no – they information exchnage – no withholding option
Creg – yes
Richard
Swiss figures went up as cautius money managers switched from equities to fixed income.
BVI (like the Caymans) amended legislation so that all their funds were instantly “non-UCITS equivalent” thereby dodging the directive.
To Ruoert
Because Cayman exchanges the information (i.e no retention nor withholding)
Hum..
I note what you say but question whether it happens in practice !
Rupert
I love how cynical you guys are about each other
About as cynical as I am about all secrecy jurisdictions
Have you noticed? π
Richard
Richard
My comment came after reading the Bank Julius Baer articles!
Do you think it is not beyond the realms of possibility that the increase may be due to the increase in the percentage witheld as was agreed when the witholding tax was introduced.
Tax collectors we have become!!!!!!!!!!!
Malcolm
The tax withholding increase was after the close of the above periods
So it is not possible your suggestion is right
Richard