The landmark deal that has been struck could lead to the HMRC enjoying a cash windfall of more than £5bn.
The Financial Times reported that “the agreement, which comes into force in 2013, respects bank secrecy by preserving the anonymity of UK account holders – a key Swiss demand”.
Chris Oates, head of Ernst & Young’s Tax Controversy team, told Reuters the agreement “may tempt Britons to move their money over the Swiss border into Liechtenstein” because “the Liechtenstein Disclosure Agreement only requires a back payment of taxes from 1999-2000 onward, rather than the total value of assets held in Switzerland”.
Is this really leading by example? One rule for taxpayers and another for tax evaders it appears.