Requests from foreign governments to UK tax office up 18%

This article titled “Requests from foreign governments to UK tax office up 18%” was written by Graeme Wearden, for The Guardian on Monday 29th October 2012 00.04 UTC

Overseas governments have intensified their interest in the tax affairs of foreign nationals based in the UK as the global crackdown on tax evasion picks up pace.

The number of requests for information about taxpayers received by the UK government from overseas tax authorities rose by 18% in the last year, according to law firm Pinsent Masons. Such requests are used to see whether rich individuals are making honest statements to domestic tax authorities about their global assets.

HMRC received the most requests for information from Norway, followed by France and Spain.

Phil Berwick, director at Pinsent Masons, said: “The jump in requests shows there are very few places to hide for wealthy individuals who may be trying to avoid tax by moving their assets around the globe. International borders are increasingly meaningless for tax authorities’ pursuit of outstanding taxes.

“London attracts ultra-high net worth individuals from a huge range of countries, and the expertise of London in wealth management makes it a stable ‘haven’ for individuals looking to protect their assets from political or economic instability overseas.”

Tax evasion has become harder to pull off in recent years with international bilateral partnerships. Legislation designed to fight terrorism and money-laundering has also made it easier for countries to share information.

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