The deal, agreed to by European finance ministers, will see EU citizens pay the same tax rate on income invested overseas, something which has taken 13 years to come to fruition.
However, Luxembourg, Austria and Belgium have been made exempt from this and will instead levy a withholding tax of 15% on savings, which will climb to 20% in 2007 and to 35% by 2010.
Switzerland will charge taxes at similar rates, and must still approve the plan, something it is expected to do once technical problems have been resolved.
The remaining EU member states will levy taxes at the same rate on savings and there will be a free exchange of information between tax authorities – an idea strongly supported by Gordon Brown, and aimed at combating tax evasion, fraud and money laundering.
However, the compromise deal will anger the Organisation of Economic Development and Co-operation, who has claimed that such an arrangement – granting special concessions to Luxembourg in particurlar – will hamper its drive to stamp out harmful tax practices in so-called ‘tax havens’.
MPs should be given the right to veto the appointment or dismissal of the senior leadership of the Office of Tax Simplification, the influential Treasury Select Committee has said
CIot urges HMRC to consider a delay to the 1 September 2017 introduction of its new corporate offence of failure to prevent the criminal facilitation of tax evasion
Three tax advisers have been arrested as part of a HMRC investigation into a suspected £132m tax fraud.
HMRC intends to extend the date for withdrawal of transitional relief on investment growth from 30 November 2016 to 31 March 2017