THE TWO BIGGEST Swiss banks could lose as much as $65bn (£40bn) in deposits as part of growing international efforts to curb wealthy individuals’ use of the country’s banks to facilitate tax evasion.
Head of UBS Jürg Zeltner told the Schweizer Bank magazine this week that he expected any resulting changes to the Swiss banking sector would cause UBS’s clients to withdraw between SFr12bn and SFr30bn (£8bn-£19.9bn), predicting that the outflow would continue for “quite a while yet”.
The US is also investigating 11 Swiss banks on suspicion of helping US citizens dodge taxes, and has already indicted Wegelin – the oldest Swiss private bank – for allegedly helping Americans evade $1.2bn in taxes, according to the Financial Times.
Credit Suisse CFO David Mathers added that “cross-border transformation including new tax treaties could result in SFr25bn to SFr35bn outflows over the next few years”.
UBS paid some $780m to the US in 2009 to settle criminal charges, while Credit Suisse has reportedly set aside SFr295m to cover any potential tax settlement.
The UK, Germany and Austria have all struck accords with Switzerland, seeing a one-off reprimand imposed for unpaid tax at a rate of 41%, with a withholding tax levied on the income of the accounts thereafter.
Richard Le Tocq, head of Locate Guernsey, discusses the chancellor’s approach to high net worth individuals, and why relocation is increasingly attractive to HNWIs
MTD represents 'the single most significant change to the UK’s system of taxation in recent times', says Knill James partner Nick Rawson. So, how prepared are SMEs for digital tax reporting?
The firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of reform
Legislation on the NICs changes to be brought forward in the autumn following publication of 'the full effects of the changes to Class 2 and Class 4' in the summer