UK-Swiss Tax Deal Rewards Those Who Hide Their Money in Switzerland

George Osborne says that ‘those who evade taxes, like benefit cheats, are leeches on society’. However, he has agreed a deal that rewards those who avoid paying taxes in the UK by hiding their money in Switzerland.

George Osborne says: ‘my message to those who try to hide their incomes from the Revenue in offshore bank accounts and false declarations is simple: we will find you and your money.’

A senior official at the Indian Central Board of Direct Taxes says: ‘money laundering or illegal commission are a criminal offence. So, our effort will be to not just bring back the money but also prosecute the owner.’

President Obama says: ‘if financial institutions won’t cooperate with us, we will assume that they are sheltering money in tax havens, and act accordingly. And to ensure that the IRS has the tools it needs to enforce our laws, we’re seeking to hire nearly 800 more IRS agents to detect and pursue American tax evaders abroad.’

On the face of those statements you would think that the UK, India and the US would take the same approach to tax dodging. However, despite talking tough on tax evaders, George Osborne has broken ranks with countries like the US and India and concluded a deal, branded disgraceful by Christian Aid director Loretta Minghella, that rewards those who have been avoiding paying tax in the UK on wealth held in Switzerland.

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