Tax deal with Swiss banks agreed by UK authorities

Here is a story just announced in the UK..............

""Tax deal with Swiss banks agreed by UK authorities""

www.bbc.co.uk...

I say '' GOOD !! ""

Everyone agree or do some think this is a sinister move to try and control those with the money ???

How soon will it be before ALL wealthy citizens get brought to heel ??

The Swiss government has agreed to tax money held by UK citizens in Swiss bank accounts for the first time, while still hiding their identity.

The deal could see between £3bn and £6bn a year being handed to HMRC by the Swiss authorities.

The agreement is the latest part of HMRC's efforts to track down and tax money hidden in offshore bank accounts.

Regards

PDUK

Switzerland is in the EEA.

They should be covered by the Tax Directives for offshore accounts.


I have accounts all over europe and outside the EEA, I have basically a few choises under the directive.

Pay a retention tax (very high and growing higher over a period of time) and still retain my confidentially, the banks and the country pay them as a lump sum, without compromising their confidentially. Perfectly legal in the EU and an option many choose. They pay tax, just anonymously.

Or they can declare it, and maybe pay less tax based on their interest payments and their financial earnings in their primary domocile.

I am supprised Switzerland being in the EEA would not be applying that EU Tax Directive to save hassle.

The EU Tax directive only applies to EEA residents, if you change your domocile outside the EEA you are no longer covered by it as an individual and thus have no obligation to pay it.

If these people have made their money in the UK then they should be paying tax in the UK. The reason people can become wealthy in our society is because people have been paying taxes to fund the infrastructure, education, health and defense of the nation. Wealth is not created in a vacum, it relies on a stable, educated, healthy society. that also needs to be defended and interests protected abroad and at home. Only possible through taxation.

Just my opinion.

reply to post by JennaDarling


JD

I think that although the Swiss are part of the European Economic Area they have retained a sense of individuality going back to the wars when Switzerland declared Neutrality......... which mean't that without ''pressure'' from the HMRC and probably other soveriegn government tax recovery departments, they would have still acted like an 'island' for foriegers to come and live anono and spend their cash..........

However I think the Swiss government is now worried by the 'flight ' to their currency and the rampant increase in costs to normal everyday items in their country...... I remember a thread on here recently talking about a Big Mac costing £9.00 ish ?????

If you have more than £500,000 stashed in your account in Switzerland then you may need to look at the options.......come clean or move your money to the Bahama's.....that is until they comply as well ...:-))

PDUK

Originally posted by PurpleDog UK
reply to post by JennaDarling

 

JD

I think that although the Swiss are part of the European Economic Area they have retained a sense of individuality going back to the wars when Switzerland declared Neutrality......... which mean't that without ''pressure'' from the HMRC and probably other soveriegn government tax recovery departments, they would have still acted like an 'island' for foriegers to come and live anono and spend their cash..........

However I think the Swiss government is now worried by the 'flight ' to their currency and the rampant increase in costs to normal everyday items in their country...... I remember a thread on here recently talking about a Big Mac costing £9.00 ish ?????

If you have more than £500,000 stashed in your account in Switzerland then you may need to look at the options.......come clean or move your money to the Bahama's.....that is until they comply as well ...:-))

PDUK

But thats the thing, under the EU Tax Directive, as the primary domicile is in the EU, I MUST pay the retention tax (or if I declare the amounts, maybe less).

I currently pay the retention tax even though it is higher because I value my privacy. The Directive (which are inacted into all member state's laws) allows that.

If I change my domicile outside the EU, then the tax directive no longer applies to me as a resident.

The law is already there, in place, in Europe.

reply to post by JennaDarling


JD

Your obviously wealthy than me because you know your stuff....:-))

I think this is all about the current Government trying to appear like it is ''clamping down'' on tax offenders to appease the general ''thick British public''..........

Switzerland is part of the EU but I still think it retains a banking system outside EU rules...historical.....

If I was you I would take any large sums and divest in the Far East and take a 'punt' on a few out there..........

I think the world is changing and public perception in the West is fast becoming one of despising the wealthy.........

Regards

PDUK

Originally posted by PurpleDog UK
reply to post by JennaDarling

 

JD

Your obviously wealthy than me because you know your stuff....:-))

I think this is all about the current Government trying to appear like it is ''clamping down'' on tax offenders to appease the general ''thick British public''..........

Switzerland is part of the EU but I still think it retains a banking system outside EU rules...historical.....

If I was you I would take any large sums and divest in the Far East and take a 'punt' on a few out there..........

I think the world is changing and public perception in the West is fast becoming one of despising the wealthy.........

Regards

PDUK

hahaha... I know the stuff that affects me

I am not sure that the Tax Directive is mandatory for EEA members, there usually is EEA specific wording in EU directives. I do however understand the EU Tax directive because when it first came out, i had the choises, and the default choice on no reply was RETENTION tax, and it was increased not long ago. And will be increased again. I have no problems paying the retnetion tax bascially I see it as a fee for my privacy, while my domicile is within the EU and which it applies.

I have been banking offshore for most of my life lol.

Now, there is a big differeen between retail banking and private banking.. It takes BIG MONEY to open a private bank account lol, but it is worth it, you get treated well.

There is even laws that for accounts that reach a specific amount or higher ( I think that is £100,000 in the UK ) that the amount must be accounted for, justified and a paper trail. In other words, it is not laundered. There is even strict money laundering laws on transferring amounts, or buying goods with cash or even travelling with specific amounts or higher in cash, in some EU countries (and even outside the EU - ask some people in South Africa if htey can get hteir money out lol, they cant).

en.wikipedia.org...

Here is the EU withholding tax page on wikiplobdia

"Maintenance of bank secrecy laws and the EU withholding tax

Some countries agreed to fully comply with the EU Savings Directive by disclosing the names of their account holders and the interest that they earned. However, several other EU and non-EU countries, such as Switzerland, objected to the disclosure of account holders' names on the grounds that such a disclosure would be contrary to their bank secrecy laws. Bank secrecy laws prevent the disclosure of information about account holders, their assets, and their interest or other income.

Finally an agreement was struck with the objecting countries. The objecting countries achieved agreement from the EC that no further attempt would be made to commence negotiations regarding bank secrecy rules for at least 7 years, in return for which individual account holders could, if they so wished, voluntarily elect to waive bank secrecy and authorise disclosure. Those individuals who did not make any election would see a withholding tax deducted from their bank and bond interest. To avoid the withholding tax, certain types of individuals could also prove that they were exempt from taxation in their country of residence. Exempt individuals include certain diplomats and others with a special tax status in their country of residence.

Accordingly, in order to guarantee privacy and bank secrecy for EU residents who have accounts within certain territories such as Switzerland, a withholding tax of 20% is being levied on the interest earned by those EU residents. This withholding tax, which applies only to certain interest, such as bank deposit interest and bond interest, is passed on anonymously to the EU countries concerned, and is known informally as the EU Withholding Tax."

Switzerland is also covered in it.

Not just switzerland, but also many British COMMONWEALTH countries also opted for the withholding tax, that includes british territories abroad in the carribean and elsewhere.

This is all covered by the law.

Infact, supprisingly, the governments bought the banks that also had offshore accounts, as part of the bailouts. So they already have that info if they really wanted lol.

reply to post by JennaDarling


I never went down the 'private' route...after selling my main abode I banked several hundred and split it up within the UK......if it was money from my residence than it wasn't exposed BUT my god you have to protect it............ My High Bank Love me.............. I do not know why.?? but hey I aint complaining JUST waiting for the Housing market and every other market to go tits up so I can add a bit more to my assets.....

Having money in the Euro currently.......I would be worried ??

PDUK

Originally posted by PurpleDog UK
reply to post by JennaDarling

 

I never went down the 'private' route...after selling my main abode I banked several hundred and split it up within the UK......if it was money from my residence than it wasn't exposed BUT my god you have to protect it............ My High Bank Love me.............. I do not know why.?? but hey I aint complaining JUST waiting for the Housing market and every other market to go tits up so I can add a bit more to my assets.....

Having money in the Euro currently.......I would be worried ??

PDUK

If you have your money in the bank, it is only insured for a limit, you probably want to spread the money across multiple BANKS (not just accounts in the same OWNED bank even by different bank names lol), or just stick to the government % owned banks that the governmetn bought during the bailouts.

The Government is less likely to default like Iceland, Even Ireland bonds are safe I believe as Ireland will not default, if it would it would have done so by now.

Infact there is a huge upsurge in prize bonds and premium bonds in many countries run by the governments.

Again if you are unsure, sink it into cheap land for the builders to return lol, or spread it across government owned banks,

Here is another alternative overlooked, Islamic Banks. They outperform most non muslim banks.
But they do operate slightly differently.

Originally posted by PurpleDog UK
reply to post by JennaDarling

 

Switzerland is part of the EU but I still think it retains a banking system outside EU rules...historical.....

Originally posted by JennaDarling
Switzerland is in the EEA.

I just want to point out that Switzerland is not part of the EU nor a member of the EEA.

Moreover, a similar agreement was in place with the United States long before the recent one with Germany. The offer was on the table all the time, so when I read "A few years ago, nobody would have anticipated that we would conclude an agreement with Switzerland to tackle tax evasion." I conclude that they simply weren't listening because they needed us as a punching bag to blame their lousy national budget on.

The agreement is solid, pragmatic and keeps the door shut for Big Brother, it resembles the same regulations that apply to swiss residents.

However, I think one has to be realistic about the consequences of this agreement. Capital above a certain treshhold is highly mobile. Some UK capital in Switzerland might evade this new regulation and symply relocate in HongKong, Delaware, Singapore and the like.

Originally posted by woodwardjnr
If these people have made their money in the UK then they should be paying tax in the UK. The reason people can become wealthy in our society is because people have been paying taxes to fund the infrastructure, education, health and defense of the nation. Wealth is not created in a vacum, it relies on a stable, educated, healthy society. that also needs to be defended and interests protected abroad and at home. Only possible through taxation.

Just my opinion.

More like only possible through borrowing.

If a resident is residing (their domicile) is in the EU, and their banks are in Switzerland, the EU tax directive still applies to that person.

The banks could be in the NORTH POLE for all it cares, if the bank account owner named on it is a resident in the EU, the tax directive applies to them.

I could stick my savings in a boat in international waters, and pay an interest, the tax directive will apply to me, as a resident of the EU.

I wouldn't bother park my money on Switzerland. They don't have the balls to stand up to the Israel-controlled UK and US gov'ts. Better hide your money in Singapore.

Commercialisation of space.


The First Bank of Space?

I bet that will be a huge winner



EU Tax directive will still apply to me however

Originally posted by eldard
I wouldn't bother park my money on Switzerland. They don't have the balls to stand up to the Israel-controlled UK and US gov'ts. Better hide your money in Singapore.

Or how about, just spend it on something that is useful, it is no use to you when your dead

Instead, put in your will, a method to make money, ie., businesses, or properties or something but not cash lol.

Originally posted by JennaDarling
Commercialisation of space.


The First Bank of Space?

I bet that will be a huge winner

EU Tax directive will still apply to me however

edit on 24-8-2011 by JennaDarling because: (no reason given)

Lets start vthe bank of 'Space'......just need to send up a ''presence'' in the form of a small satellite in orbit and class it as out of EU juristiction....:-)

if only ?????

It has got me thinking.

PDUK

reply to post by JennaDarling


Or keep buying more Chinese goods so they'll continue to outbid the West on every resource on the planet. Rejoice!!!