The UK taxman is to broach the long-standing security of Swiss bank accounts, using access to the accounts obtained by Germany.
HM Revenue & Customs (HMRC) is linking up with the German tax authorities to make use of their recent disclosure agreements with the Swiss, The Sunday Times reported.
Tens of thousands of British people are thought to have bank accounts in Switzerland, whose banking system has long been a byword for hidden cash.
The German government has agreed a 'mutual assistance' treaty with the Swiss which states that banking secrecy cannot be used to block the release of documents in cases punishable by imprisonment.
HMRC will have to supply allegations to obtain information, however, and cannot 'fish' for information.
Drugs barons and City fraudsters are expected to be the first target of the probes.
The Sunday Times quoted 'a senior official at HMRC' saying: 'Our reading of the law is quite clear. Germany has the agreement with the Swiss, and we have an agreement with the Germans...Until now we have not had the opportunity to get at the Swiss assets of British tax dodgers.'
Further Reading:
Comments
Have your say on this article