Switzerland agrees to exchange tax data

A Protocol delivering comprehensive exchange of information up to OECD and international tax standards between Switzerland and the UK, which covers UK taxes of all kinds, was signed in London today by The Financial Secretary to the Treasury, the Right Honourable Stephen Timms MP and the Swiss Ambassador to the UK, His Excellency Alexis P Lautenberg.

Stephen Timms said:

“I very much welcome the Swiss Federal Council’s agreement on international co-operation in tax matters and their adoption of the OECD standard on administrative assistance.

“The days when hiding money off-shore represented a viable means of evading UK tax are rapidly drawing to a close.”

Dave Hartnett, HMRC’s Permanent Secretary for Tax, added:

“Transparency and information exchange are the foundation on which fair and effective tax systems are built. I am delighted that there is growing global recognition of the inevitability of properly regulated information exchange as the key to proper tax visibility.”

The text of the agreement can be accessed on the HMRC website by following the link below:

http://www.hmrc.gov.uk/international/switzerland-eoi.pdf

and will in due course be laid as Schedules to a draft Order in Council for consideration by the House of Commons. It will then also be available from the Stationery Office. The Protocol will come into force as soon as each government has completed the necessary procedures to give effect to it under its domestic laws.

Teachers urged to look into Tax Matters

With schools across the country getting ready for the new school year, HM Revenue & Customs (HMRC) is urging teachers to log onto its new, free online resource for teachers – Tax Matters.

Specifically designed for Personal, Social, Health and Economic education (PSHE), Business Studies and Citizenship teachers of pupils aged 11-19, the Tax Matters resource contains three new teaching modules, to help secondary school pupils gain an understanding of how tax is raised, what the main taxes are, and what they ultimately pay for.

The three modules – which cover Income Tax, National Insurance, and Tax and Society –use fun, interactive features such as videos, quizzes and games, as well as key facts and figures, to help teachers bring the subject to life in the classroom.

There are also accompanying, ready-made lesson plans for each module available online, for both Key Stage 3 and Key Stage 4 pupils – all packed with ideas for using Tax Matters with students.

All of the materials are available free by visiting www.taxmatters.hmrc.gov.uk. You can also find them on the Personal Finance Education Group (pfeg) website at www.pfeg.org/teaching_resources/resources/tax_matters.html, where they have been awarded the pfeg quality mark.

HMRC’s Caroline Smith said:

“By the end of the modules, students will be well equipped to understand what tax is all about. They’ll be clear why we pay tax in the first place, and what it means for them on a practical level, such as why it’s important to keep hold of their National Insurance number and how to understand their tax code.

“Tax Matters was developed with the help of teachers, and so reflects what they need on the ground. It’s interactive, fun and free to download, so we’d urge anyone teaching financial education this year to give it a try.”