In the latest attempt to crack down on tax evasion the UK has signed an information exchange agreement with France, Spain, Germany and Italy. Under the terms of the agreement banks in each of the five countries will be required to reveal the financial details of foreign account holders for onward transmission to their home country. Their home country will then be in a position to check to ensure that foreign savings income is being declared and taxed correctly in the UK. Initially described as a pilot it is hoped that this will eventually be rolled out to other EU countries.
This adds to the information exchange agreements signed with Switzerland, Liechtenstein, Isle of Man, Guernsey and Jersey. Luxembourg has also announced yesterday that it will start exchanging financial information with other EU countries following its earlier decision to sign up to a similar agreement with the USA. The UK has been at the forefront of the battle against tax evasion and this issue has been at the forefront since the UK took up its presidency of the G8 on 1 January 2013.
Posted – 12/04/2013