Pearse Trust Blog

As its European neighbours agree to Switzerland’s tax agreement, the country of France is holding steadfast to its resolve not to accept the unprecedented proposal. Called Project Rubik, the arrangement allows Swiss banks to avoid releasing the names of their account holders if they agree to impose an income tax on the deposited funds. The monies are then transmitted to the countries in which the depositors reside, serving as a means of recouping the lost revenues from previously unpaid taxes.

In recent years, in an effort to crack down on international money laundering and tax evasion, nations like the United States, Germany and the UK began investigating just how widespread the practice was. With the assistance of international organisations like the Financial Action Task Force (FATF) and the Organization for Economic Co-operation and Development (OECD), US and European Governments began putting pressure on not only the Swiss, but also tiny Liechtenstein and small Caribbean island nations.

In Switzerland a lump-sum tax currently available to rich foreigners is coming under heavy fire from citizens deeming the tax to be unfair.

A groundbreaking amnesty deal between the UK and Switzerland is likely to be announced shortly with David Hartnett, HMRC Permanent Secretary for Tax, telling a group of tax investigation professionals to expect the deal in May or June.