{"id":13772,"date":"2012-01-23T09:22:41","date_gmt":"2012-01-23T09:22:41","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=13772"},"modified":"2012-01-23T09:22:41","modified_gmt":"2012-01-23T09:22:41","slug":"it-looks-like-the-uk-swiss-tax-deal-is-in-trouble","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2012\/01\/23\/it-looks-like-the-uk-swiss-tax-deal-is-in-trouble\/","title":{"rendered":"It looks like the UK Swiss tax deal is in trouble"},"content":{"rendered":"

For the\u00a0second\u00a0time\u00a0this\u00a0morning, I pick up a significant\u00a0change\u00a0in sentiment in a news story that suggests real change is afoot. First it was the NHS<\/a>, now it is about the UK Swiss tax deal, and importantly, the change in mood music is coming from Swissinfo, which has reported<\/a>:<\/p>\n

The tax deals which Switzerland reached last year with Britain and Germany could yet fail in the face of opposition in Europe and in the countries concerned.<\/p>\n

The agreements use the so-called \u201cRubik\u201d model for dealing with the undeclared billions held by foreign customers in Swiss banks.<\/p>\n

It is quick and easy: the countries whose taxpayers have tried to hide their assets get an inflow of money straight away, and Swiss banks remain relatively attractive to the super-rich who prefer to keep a low profile.<\/p>\n

It works by levying a withholding tax on the assets held in the banks. In other words, a tax is automatically levied on the interest they earn, and then remitted to the country concerned. But no information about the identity of clients is provided.<\/p>\n

And that is the sticking point: the European Union is insisting on \u201cautomatic exchange of information\u201d, so that tax evaders can be tracked down.<\/p><\/blockquote>\n

Apologies to them for a lengthy quite but it's necessary to get a sense of how Swiss sentiment is changing. And\u00a0changing\u00a0it is\u00a0because\u00a0this deal is beginning to look dead in the water.<\/p>\n

It contravenes EU laws in the European Savings Tax\u00a0Directive.<\/p>\n

It undermines EU solidarity against tax evasion.<\/p>\n

It helps preserve the concept of Swiss banking secrecy that was designed to assist tax evasion, and still does so.<\/p>\n

And it's very obviously a tawdry deal.<\/p>\n

Osborne and Hartnett went for it. But it looks like the EU will kill it, as a very few of us suggested possible. And that will be good news for the EU as a whole.<\/p>\n","protected":false},"excerpt":{"rendered":"

For the\u00a0second\u00a0time\u00a0this\u00a0morning, I pick up a significant\u00a0change\u00a0in sentiment in a news story that suggests real change is afoot. First it was the NHS, now it
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