Brussels could sue over UK tax agreement

The European Commission could sue over the UK tax agreement with Switzerland, according to media reports.The Financial Times reports that EU lawyers say legal action could be taken unless the controversial agreement is radically altered. According to the FT, Germany has now begun fresh talks with Switzerland and the UK is assessing its options, despite being disappointed by the perceived ultimatum.It has been argued that the UK tax agreement with Switzerland, which if it goes ahead will take effect in 2013, will make it easier for UK tax evaders to remain anonymous. The Tax Justice Network, which has called for the urgent cancellation of the agreement, said the latest move was ‘excellent news’.A statement from the Tax Justice Network said, “We have already demonstrated how the UK cannot hope to get even a fraction of the money from the deal that has been trumpeted by HMRC. And we don't tire of saying that nobody, anywhere, has found a specific fault with our analysis – even though the tax advisers who are currently drooling over the possibilities that emerge from all those loopholes have sought to play our report down.”

http://www.50percenttax.co.uk/index/2011/12/1/brussels-could-sue-over-uk-tax-agreement.html