UK authorities crack down on savings hidden in tax havens

For years HM Revenues & Customs (HMRC) have been eyeing up bank and savings accounts stashed away in numerous tax havens across the globe. After years of unsuccessfully trying to coax tax information out of the authorities, HMRC have now managed to negotiate a series of deals which could see millions of repatriated taxes flow back into the treasury. The real breakthrough occurred last year when the German government got hold of a document listing names, amounts, investments and details of hundreds of accounts held in Liechtenstein. The list was obtained from Heinrich Kieber, a 42-year old former employee of LGT Bank who ransomed the list of German tax-dodgers to the German authorities for approximately £3.8m. The list is believed to contain the names of over 5,000 UK citizens and the amount of savings within these accounts is thought to amount to near £3bn.

Since the leaked document emerged the UK government has made several steps to constrain nearby tax havens. The government has continued to ply pressure on offshore financial authorities in Jersey, Guernsey, Isle of Man and the British Virgin Islands, and in last April’s tax disclosure HMRC managed to recover over £450m from 45,000 people. In a recent deal with these tax havens, the UK government has arranged for financial information regarding UK citizens to be transferred to HMRC. The UK government has also managed to conclude a similar deal with Liechtenstein which could potentially see the return of billions in unpaid taxes. HMRC are currently offering investors the chance to volunteer information in return for penalties capped at 10% of tax evaded. Those who refuse, if caught, face harsher penalties added on top of paying the amount of tax already owed.

Bono - Boring & bland tax dodging mother****er...