Negotiations between the British tax authorities and national governments have calculated that a clampdown on overseas tax evasion by the government could raise £10bn. Originally, £1bn had been budgeted by the Treasury relating to an agreement with Liechtenstein. Further funds will be raised from secret bank accounts in the mini-state and Swiss Banks accounts.
Revenue & Customs rely on tax havens disclosing information to track down tax evaders and demand payment of unpaid tax. Three more countries have agreed to negotiate but Officials refuse to disclose which although they did confirm that the Cayman Islands, which is one of the biggest offshore tax havens, is not one of them.
Developments have been extremely slow, despite Gordon Brown raising the issue at the G8 and G20 meetings. Tax evasion could result in court action being taken against those involved although it is still unclear if they will be prosecuted.
Referring to the financial deficit, the chancellor, George Osborne has said, “”We are in this together and that includes those who try to evade tax. We are in the process of striking a deal with Switzerland and more will follow. This will raise many billions of pounds that the previous government failed to do. This is tough but fair.”