We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
£40bn held in Swiss bank accounts by UK taxpayers....
BertieUK
Posts: 1,701 Forumite
An estimated £40bn is being held in Swiss bank accounts by UK taxpayers.
The estimate, the first to be published, is contained in the documents accompanying the Autumn Statement.
A breakthrough tax agreement with the Swiss government comes into force on 1 January 2013.
It is hoped that this will flush out £5.3bn in extra tax over the next six years, from UK citizens who have been hiding money in Swiss bank accounts.
"I am staggered at the sums, it is a huge amount of money, absolutely enormous," said Ronnie Ludwig at accountants Saffery Champness.
"It makes me wonder how much is stashed away in other tax havens."
http://www.bbc.co.uk/news/business-20616680
The estimate, the first to be published, is contained in the documents accompanying the Autumn Statement.
A breakthrough tax agreement with the Swiss government comes into force on 1 January 2013.
It is hoped that this will flush out £5.3bn in extra tax over the next six years, from UK citizens who have been hiding money in Swiss bank accounts.
"I am staggered at the sums, it is a huge amount of money, absolutely enormous," said Ronnie Ludwig at accountants Saffery Champness.
"It makes me wonder how much is stashed away in other tax havens."
http://www.bbc.co.uk/news/business-20616680
0
Comments
-
Hmmmmnnn ... thanks for that... it just struck me how little we ever hear of Switzerland - in any capacity! No news, wars,terrorism,economic stories,innovation, science etc etc - coulkd they be deliberately be keeping a low profile? High time we investigated it seems - pleased at the spotlighting!0
-
DecentLivingWage wrote: »Hmmmmnnn ... thanks for that... it just struck me how little we ever hear of Switzerland - in any capacity! No news, wars,terrorism,economic stories,innovation, science etc etc - coulkd they be deliberately be keeping a low profile? High time we investigated it seems - pleased at the spotlighting!
I think that is just a reflection of your chioce of news sources, I read plenty of Swiss related financial news.0 -
What sort of interest do these accounts pay?0
-
Well the full £40bn is around 3 weeks of govt spending, the 'extra tax' (£883 million pa - 1/2 days-worth) is pretty much a rounding error - Ronnnie is easily staggered...I am staggered at the sums, it is a huge amount of money, absolutely enormous," said Ronnie Ludwig at accountants Saffery Champness.0 -
I don't understand the issue. Aren't we allowed to keep money in overseas bank accounts ?0
-
Why the money is there / why it's taken until now for any authorities to recognise it as a problem to be addressed, it's all academic because it's in the past.
I'm more interested in the response from these account holders. Will it be a classic response of 'fight' or 'flight' ?
Flight is pretty obvious. Move (or threaten to move) large sums of money to another safe haven with a reputation for secrecy and few questions. This is the response the Swiss people with vested interest would fear. Their image as custodians of overseas money has been cultivated over many years. They don't want the taps on the income flows switched off.
Fight is another option. People with the serious amounts of money we are talking about have access to complicated financial company structures to disguise ownership. They can also draw upon significant legal and accounting expertise.
What would you do as one of these asset holders?0 -
What sort of interest do these accounts pay?
At present probably nothing or negligible on Sterling, Swiss Franc, Euro, Yen and US Dollar deposits. Maybe even negative interest on Swissie deposits.
QE (aka financial repression) makes it all but impossible to hold large cash balances. That, of course, is the point of QE now the banks have been saved.0 -
Miss_Havisham wrote: »I don't understand the issue. Aren't we allowed to keep money in overseas bank accounts ?
Yes you are. The reason people keep money in Swiss banks is, in part, because banking secrecy laws in Switzerland have allowed people to keep assets hidden from tax authorities.0 -
Yes you are. The reason people keep money in Swiss banks is, in part, because banking secrecy laws in Switzerland have allowed people to keep assets hidden from tax authorities.
I can at least sleep at night as up to now I have not had the luxury of Swiss Banking, but maybe some could get worried if they have earned but not declared their assets.0 -
Why hold swiss when they are buying euros anyway.
Not sure if I read it wrong but they issued more new swiss currency then the gdp to stop it gaining
It was the worlds last gold backed country not long ago0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards