Swiss tax deal could work out as "revenue negative"

The Tax Justice Network (TJN) has claimed that the controversial tax deal between the UK and Switzerland could actually prove to be "revenue negative" due to a series of loopholes. The group has examined all the potential ways in which funds will be collected from the deal by HM Revenue & Customs (HMRC). The group has said that the scheme will bring in far less for the Treasury than the £5-7 billion predicted- coming in at no more than £1 billion, according to their calculations. The deal was struck earlier this year, and is very similar to a previous one established between Switzerland and Germany. It effectively offers an amnesty to people who have kept money in Swiss banks, in return for a one-off payment for tax unpaid in the past and an annual levy on the sums held in Switzerland.Critics of the plan have vocally opposed the deal, not least because they say that it is fundamentally counter-productive. Some tax experts have said that it will, in fact, make it more difficult for the EU to extend its savings tax directive. The TJN also said that the UK's very wealthy will be able to use trusts to hold their ownership of assets and make very simple transfers to other jurisdictions before the deal takes effect.

http://www.50percenttax.co.uk/index/2011/10/25/swiss-tax-deal-could-work-out-as-revenue-negative.html