by Alex Marriage
The European Commission objected to aspects of the Rubik deals which interfere with the European Savings Tax Directive (EUSD) and other EU treaties. The EUSD demands automatic exchange of tax information for certain types of income. Despite covering only a small fraction of types of income and investment, this law led European governments to share information on nearly €13 billion of their citizens income, in 2005 alone, that might not otherwise have been taxed.
Not only is Rubik a beggar thy neighbor policy, it is also immoral, short sighted and self defeating for Switzerland’s counterparties. Without information about the sources there is no way of verifying that the amount of tax anonymously returned is correct or fair. The deal will include a one off anonymous payment on existing deposits, allowing tax evaders to go unpunished. By 2013 when the deal is in force, many tax dodgers will have already moved their assets onto other havens or hidden their identities behind shell companies and trusts.
Other countries are likely to follow
Equally these deals will not end disputes over hidden assets between
Britain receives disk with names of thousands of potential evaders: The disk was sent to Britain by French authorities it contains information on HSBC clients in Geneva and will lead to hundreds of prosecutions and thousands more will be asked to voluntarily explain themselves or face prosecution. The disk was stolen by a bank employee and provided to French authorities who have an agreement to share tax information with the
A transparent and multilateral solution will end these disputes and ensure wealthy citizens pay what they owe, therefore parliamentarians in