David Jetuah, Accountancy Age, Thursday 28 October 2010 at 17:27:00

Swiss agreement to help UK authorities probe account holders who may haveundeclared income stashed away could recoup 10bn for the Treasury


HMRC's groundbreaking deal with the Swiss tax authorities could generate upto 10bn from high-net worth individuals with secret accounts.

Swiss banks have 56 times more assets under management than financialinstitutions in Liechtenstein, where the taxman is currently running an amnesty.

HMRC expects to yield 1bn from existing Liechtenstein account-holdersbetween now and 2015.

In this context, tax advisers from law firm McGrigors said a conservativeestimate of the amount that could be generated from undeclared assets held inSwitzerland could be 5bn-10bn.

Jason Collins, head of tax disputes and investigations at the firm, said: "There is a lot for HMRC to play for."

The downside for HMRC, Collins added, was the potential for the morecommitted tax evaders in Switzerland to shift their accounts to other offshorejurisdictions.

Further reading:

Swissdeal drives taxpayers to Liechtenstein amnesty