Leading article: The Chancellor's missed opportunity

Share
Related Topics

Political pragmatists will say that George Osborne has done a good deal in getting Swiss banks to levy what is effectively a tax on secret accounts held by British citizens. It should net the Treasury around £5bn. But the truth is this is a dubious deal that allows tax dodgers to pay less than they would in UK taxes, go unpunished for the crime of tax evasion and keep their identities from the taxman.

A much better alternative was in the wings. The revised European Union Savings Tax Directive has received the approval of 25 EU states and others could have been brought to agreement. The directive would have required an automatic exchange of information on income from interest and capital gains throughout Europe, Switzerland, Liechtenstein and Britain's tax havens.

The lower-grade bilateral deal with Switzer-land has effectively scuppered that. For all Mr Osborne's rhetoric on being "as tough on the richest who evade tax as those who cheat on benefits", he is letting tax dodgers off lightly. Why? Although tax evasion costs the Exchequer about £14bn a year, large amounts of cash enter the UK economy through tax havens like Jersey, Guernsey, the Isle of Man and the Cayman Islands. And the UK mainland is a tax haven for people of foreign domicile; even if they are resident here, they pay no tax on income not remitted to the UK.

Those who favour tax havens argue that they are an impetus for economic growth, sound fiscal policy and individual freedom. But there is a difference between tax regimes, which assist open commerce, and those that are so deliberately opaque that they hide the spoils of cheating, fraud, corruption, terrorism and drug-dealing. At a time when jobs of low-paid public-sector workers are being sacrificed, the Government should be doing more to make the rich pay their fair share.

React Now

Latest stories from i100
iJobs Job Widget
iJobs General

Opilio Recruitment: Full Stack Software Developer

£35k - 45k per year + Benefits: Opilio Recruitment: We are currently recruit...

Opilio Recruitment: Senior Developer

£50k - 60k per year + Benefits: Opilio Recruitment: We have an exciting Seni...

Opilio Recruitment: Senior Front End Developer

£50k - 70k per year + Benefits: Opilio Recruitment: We have an exciting Seni...

Opilio Recruitment: Senior Digital Designer

£50k - 55k per year + Benefits: Opilio Recruitment: An exciting opportunity ...

Day In a Page

Read Next
 

Buy from Amazon and Apple and it’s you that ends up owned

Boyd Tonkin
Hughes in Durban in 2009, celebrating the first of his two centuries in the second Test against South Africa  

Sport will always be risky – we must accept that, even in the wake of the tragic death of Phillip Hughes

Rosie Millard
Homeless Veterans Christmas Appeal: ‘We give them hope. They come to us when no one else can help’

Christmas Appeal

Meet the charity giving homeless veterans hope – and who they turn to when no one else can help
Should doctors and patients learn to plan humane, happier endings rather than trying to prolong life?

Is it always right to try to prolong life?

Most of us would prefer to die in our own beds, with our families beside us. But, as a GP, Margaret McCartney sees too many end their days in a medicalised battle
Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night - is that what it takes for women to get to the top?

What does it take for women to get to the top?

Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night and told women they had to do more if they wanted to get on
Christmas jumper craze: Inside the UK factory behind this year's multicultural must-have

Knitting pretty: British Christmas Jumpers

Simmy Richman visits Jack Masters, the company behind this year's multicultural must-have
French chefs have launched a campaign to end violence in kitchens - should British restaurants follow suit?

French chefs campaign against bullying

A group of top chefs signed a manifesto against violence in kitchens following the sacking of a chef at a Paris restaurant for scalding his kitchen assistant with a white-hot spoon
Radio 4 to broadcast 10-hour War and Peace on New Year's Day as Controller warns of cuts

Just what you need on a New Year hangover...

Radio 4 to broadcast 10-hour adaptation of War and Peace on first day of 2015
Cuba set to stage its first US musical in 50 years

Cuba to stage first US musical in 50 years

Claire Allfree finds out if the new production of Rent will hit the right note in Havana
Christmas 2014: 10 best educational toys

Learn and play: 10 best educational toys

Of course you want them to have fun, but even better if they can learn at the same time
Paul Scholes column: I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season

Paul Scholes column

I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season
Lewis Moody column: Stuart Lancaster has made all the right calls – now England must deliver

Lewis Moody: Lancaster has made all the right calls – now England must deliver

So what must the red-rose do differently? They have to take the points on offer 
Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

Sol Campbell cries foul at Labour's mansion tax

The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game