In a concerted effort
to combat tax evasion, the G8 members have signed an accord for the automatic
exchange of information which it is hoped will become the new “gold standard”
for inter-governmental co-operation on tax fraud.
Other measures are
also in the making: France, the UK, Germany, Spain and Italy have announced
that, together with Singapore, the British Virgin Islands, the Turks and Caicos
Islands, Montserrat, Anguilla, Bermuda, Gibraltar and the Cayman Islands, they
have all signed up to the Multilateral Convention on Mutual Administrative
Assistance in Tax Matters. This means
there will be an exchange of information (mostly one way, one would be
guessing?!) in respect of bank accounts and assets held in these territories. The “home” tax jurisdiction will, therefore,
have access to extensive detailed information on the accounts and other financial
assets of their residents, in order to ensure full disclosure and full
compliance.
If you hold any
previously unreported accounts or other financial assets, then you are urged to
make a voluntary disclosure to the relevant tax authority. It is always better to come clean now, and
accept a reduced penalty for your “co-operation,” than wait for your financial details
to wing their way from any of the above tax havens – the pain will be much
worse if the home tax authorities find you first!
