Members of the UK200Group of independent accountancy and lawyer firms have today commented on news that the BBC’s Panorama programme is claiming that HSBC’s private bank in Switzerland has helped clients to evade millions of pounds in tax, as well as offering deals to help tax dodgers stay ahead of the law.

The programme, subtitled The Bank of Tax Cheats, is due to air on BBC1 tonight at 20:30 and will detail how the bank turned a blind eye to tax evaders as well as broke the law by actively helping its clients. HSBC admitted that some individuals took advantage of bank secrecy to hold undeclared accounts, but said it has now “fundamentally changed”. HM Revenue & Customs (HMRC) was given the leaked data in 2010 and has identified 1,100 people who had not paid their taxes, but only one tax evader has been prosecuted so far. However, the Revenue says that £135m in tax, interest and penalties have now been paid by those who hid their assets in Switzerland.

Chairwoman of the Public Accounts Committee, Margaret Hodge MP, said:”I just don't think the tax authorities have been strong enough, assertive enough, brave enough, tough enough in securing for the British taxpayer the monies that are due.” The bank faces criminal investigations in the US, France, Belgium and Argentina but in the UK, where the bank is based, no such action has been taken.

Doug Sinclair, Head of Tax Investigations at UK200Group member firm BKL:

“HMRC commenced certain investigations into individuals shortly after receiving the stolen data way back in 2010, so it is incorrect to say that nothing has been done with the information. However as an advisor who has previously acted for a number of people caught up by this issue, a large proportion of the individuals were not domiciled in the UK and therefore the amount of tax at stake was either nil or very negligible; a far cry from the shouts of fraudulent activity.

“Although this is still a timely reminder for any individuals who may owe tax due to monies held in any offshore bank in any jurisdiction to take advantage of one of HMRC’s disclosure facilities, which can guarantee immunity from prosecution and reduce the amount of penalties involved. I urge anybody who wishes to take advantage of the facility to move fast as time is approaching when the best deal HMRC has ever offered runs out.”

John Watkins, Senior Partner at UK200Group member firm Dickson Middleton:

“Tax compliance is the responsibility of the individual under self-assessment and it is a responsibility which cannot be delegated to professional advisors. The ethics of the individual in seeking or being advised to hide their assets offshore is one for them and them alone to face the consequences of should it be shown at some point down the line to have crossed the line from tax avoidance to tax evasion. If a financial institution has knowingly assisted individuals to hide their money away from the taxman, then why are all the individuals involved not being prosecuted under proceeds of crime and money laundering legislation? Is it a question again of being too big to bring to account or too complicated to explain to a jury?

“Turning to Margaret Hodge MP’s comment that ‘I just don't think the tax authorities have been strong enough, assertive enough, brave enough, tough enough in securing for the British taxpayer the monies that are due’, one would have to say that the approach of successive Governments’ to de-skill HMRC’s service by closing local tax offices staffed by experienced and well trained staff on the ground and replacing them with call centre trained staff who cannot answer anything beyond a basic question before referring it to a ‘technical department’ does not help in this regard.  A myopic rush to save costs has reduced the credibility that HMRC has with the general public and professional advisors, as well as its ability to view taxpayers at a detailed and local level.”

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Established in 1986, UK200Group is the leading mutual professional association in the UK with some 150 offices of quality-assured member accountancy and lawyer firms throughout the UK totalling over 550 partners, 150,000 business clients and global links in over 50 countries. UK200Group provide services and products that are designed to enhance the business performance of its members.  Telephone 01252 401050, email admin@uk200group.co.uk or visit www.uk200group.co.uk 

Disclaimer:

UK200Group is an association of separate and independently owned and managed accountancy firms and lawyer firms. UK200Group does not provide client services and it does not accept responsibility or liability for the acts or omissions of its members.  Likewise, the members of UK200Group are separate and independent legal entities, and as such each has no responsibility or liability for the acts or omissions of other members.

 

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