EU threatens to sue UK over Swiss tax deal

EU threatens to sue UK over Swiss tax deal

Account holder secrecy contradicts EU Savings Directive, lawyers claim

THE EUROPEAN UNION is threatening to sue the UK over its tax agreement with Switzerland.

European Commission lawyers have said that the deal was in breach of European Union (EU) laws that are tougher on tax evasion. Chancellor George Osborne has been warned that he must renegotiate the deal or face a writ from the EU.

The deal will protect the secrecy enjoyed by UK residents with accounts in Switzerland in return for a large percentage of the capital in their accounts and a withholding tax. Germany negotiated a similar deal and, prompted by domestic pressure, has begun a new round of talks with Switzerland, the Financial Times reports.

The EU claims that the deal contradicts the EU Savings Directive and undermines its negotiating mandate.

Algirdas Semeta, the EU’s tax commissioner, told the Financial Times: “If we are unable to sort out these problems, then it is clear that as guardians of the treaty we have to proceed with the instruments that are in our hands.”

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource