The Chancellors message to tax evaders

"Tax evasion is morally repugnant. It's stealing from law-abiding people who face higher taxes to make good the lost revenue. Those who evade taxes, like benefit cheats, are leeches on society. And 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."

That is the rather stark and ominous message from George Osborne in last Sunday's Observer.

He promises that the offshore asset deal between the UK and Switzerland is “just the start” of his commitment to closing down tax loopholes and tax havens. The balance of the article then outlines the coalition’s achievements at reducing tax avoidance by increasing charges on capital gains and non-domiciled - so called 'non-dom' taxpayers working in Britain.

Mr Osborne contrasts his swift and targeted measures with 13 years of inertia under New Labour, Tony Blair and Gordon Brown, who, it should be noted, turned down a similar deal with Switzerland ten years ago. As Mr Osborne said during the interview, "The last government presided over a bonanza of tax evasion and avoidance." 

There are some experts who feel that there are some reasons for caution over the recent Swiss-UK deal. Those experts are sceptical as to whether the deal with Switzerland will yield the taxes that the Treasury estimates.

It should also be reported that European Union (EU) may yet scupper Mr Osborne’s plan. Last Friday’s Financial Times reported a spokesperson for Mr Algirdas Semeta, the EU tax, customs and anti-fraud commissioner as saying: "We will carefully examine the text to make sure the planned bilateral arrangements are compatible with the EU savings taxation rules. The Commission will, if necessary take appropriate action."

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