16/04/2003

Laws clamp down on cross-border tax evasion

Automatic exchange of information between tax authorities to combat cross-border tax evasion on savings income came a step closer today with the publication of the Finance Bill.

The Bill includes legislation that will enable the Inland Revenue to collect information automatically about the payment of savings income to overseas residents, and to exchange it with other countries. In particular, it will enable the UK to implement the draft European Directive on the Taxation of Savings once it is adopted.

The European Council reached political agreement on key aspects of the Directive in January. The Directive will help combat cross-border tax evasion by individuals by enabling the UK and other EU countries to ensure that savings income is correctly reported.

Under the proposals, businesses and public bodies that make savings income payments to, or collect savings income payments for, individuals resident overseas will have to report details on the individuals, and the payments made, to the Inland Revenue.

Also as an alternative to exchanging information about cross-border payments, three EU countries (Austria, Belgium and Luxembourg) will, for a transitional period, impose a withholding tax. UK residents receiving interest from these countries may request that tax is not withheld.

The Directive will not take effect before 1 January 2005.

(GMcG)

Related UK National News Stories
Click here for the latest headlines.

30 November 2010
Corporation Tax Reform To Create 'Competition'
The Government has published details of its Corporate Tax Reform programme consisting of a series of essential reforms designed to improve the UK's tax competitiveness. Measures include the introduction of new Controlled Foreign Company (CFC) rules and a commitment to introduce a Patent Box.
07 September 2011
Childcare Costs Force Poor Out Of Work
Families on low-incomes across the UK are having to turn down jobs or are considering leaving work because they can't afford to pay for childcare. New research from Save the Children and Daycare Trust also found that parents, regardless of income, say that they can't afford not to work, but struggle to pay for childcare.
30 May 2014
More Fall Into Debt Following HMRC Overpayments
The number of issues reported to Citizens Advice of people falling into debt as a result of repaying overpaid tax credits increased by 14 per cent in the 2013/14 tax year. Tax Credit debts arise when HMRC over-estimates a person’s entitlement to financial support and ends up having to recoup overpayments.
06 April 2011
Government Tackle Tax Avoidance
David Gauke, Exchequer Secretary to the Treasury, has today announced a change in legislation to prevent tax avoidance. The measure will prevent individuals from taking advantage of a tax loophole that would have emerged today had the Government not taken action.
18 March 2004
Chancellor’s film relief rules broadly welcomed
Chancellor Gordon Brown’s decision to offset the closing of a tax loophole widely used by filmmakers with extended tax relief has been generally well received by industry bodies.