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.

International economic watchdog warns UK is falling behind

Philip Hammond, Shadow Chief Secretary to the Treasury, has responded to today’s OECD growth forecasts predicting that the UK will be the only G7 country not to see any growth this year.

"We will be the only major economy without any growth this year, and the only one for which prospects have got worse not better", he said.

He added that we were ill-prepared to face the recession because of economic and fiscal mismanagement on the part of Gordon Brown. "Far from being well placed to weather the storm as Gordon Brown claimed", Hammond said, "these figures show yet again that Britain is worse placed than our neighbours".

The OECD expects the UK economy to contract by 4.7 per cent in 2009 - even more than its last forecast of 4.3 per cent.

OECD FIGURES SHOW "SHAMEFUL" LEVEL OF YOUTH DRINKING

Shameful figures show the UK has the highest rates and level of drunkenness among 13-15 years olds of any country in the OECD.

A report, issued today by the OECD states; “Drunkenness is the highest in the OECD, with one in three 13 and 15 year olds having been drunk at least twice.”

The report also exposes high teenage pregnancy rates in the UK.

SNP MSP Kenneth Gibson branded the details exposed in the report as shameful and called for support for Scottish Government proposals to introduce a minimum price for alcohol and to ensure licensing boards consider raising the age limit for off-sales of alcohol.

Mr Gibson said;

“The level of youth drinking across the UK is shameful.

“While this report covers the UK as a whole we know the level of youth drinking in Scotland is unacceptable and it can not be allowed to continue.

“There is a real and urgent need to tackle Scotland’s relationship with alcohol.

“The Scottish Government is setting out a radical approach to alcohol that will help to bring youth drinking under control.

“Ending pocket money prices for alcohol, where litres of cider can be bought for £3.00 is vital in addressing our problem with youth drinking.

“Similarly it is vital that local authorities are able to consider raising the age limit for offsales to 21 as one of a package of measures to stop underage sales and to tackle proxy purchasing - where older teenagers by alcohol for younger ones - if they think it is necessary.

“Ending teenage drinking and drunkenness requires bold steps. The Scottish Government is prepared to take action – it is for other parties to explain whether they will support them.”

Gibraltar to share tax information

The United Kingdom signed a Tax Information Exchange Agreement (TIEA) with Gibraltar yesterday, which will help to ensure that those liable to tax in the UK pay the right tax on investments in Gibraltar and on supplies of goods and services into and out of the UK.

The TIEA was signed by the Financial Services Secretary to the Treasury, Lord Myners, and the Chief Minister of Gibraltar, Peter Caruana QC.

Welcoming the signatures, the Financial Secretary to the Treasury, the Rt Hon Stephen Timms MP, said:

“I am very grateful to the Government of Gibraltar for their constructive approach to this agreement and I welcome the fact that Gibraltar has now joined the rapidly growing number of jurisdictions making good on their commitments to apply high standards of transparency and exchange of information in tax matters.

“Today’s agreement is in line with the OECD’s standards of transparency and the implementation of these standards is very much in the interests of all those taxpayers who comply with the spirit and letter of the law.”

The text of the TIEA can be accessed on the internet at: www.hmrc.gov.uk/international/gibraltar-eol.pdf

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