Revenue gets tough on foreign tax evasion
A consultation document launched today by the Inland Revenue will examine how the UK can best comply with a EU directive aimed at stamping out tax evasion on savings income paid to overseas residents.
Link: EU tax directive sparks war of words
Earlier this month, the European Directive on the Taxation of Savings, was adopted by European finance ministers aimed at stamping out cross-border tax evasion.The Revenue document will look at details of the proposed scheme implementing the directive.
It will examine who will be affected by the directive and how it may work in practice.
Dawn Primarolo, paymaster general, said: ‘The scheme implementing the Directive, which the Inland Revenue begins consulting on today, builds on our existing reporting regime, and will help to ensure that people pay the right amount of tax at the right time.’
Businesses that will be affected include building societies, banks, registrars, custodians and nominees, authorised unit trusts, open-ended investment companies and anyone who makes savings income payments.
Such organisations and individuals will have to compile annual reports about individuals in question, including information about their identity and residence.