It has recently come to our attention that two Britons have been arrested on suspicion of using Swiss Bank accounts held with HSBC to evade UK taxes. This could lead to the first criminal prosecutions in a three year clampdown on offshore tax evasion by HMRC. According to our source, HMRC made the arrests late last year and both individuals have been released on bail pending charges. These arrests are thought to have resulted from the review of the information stolen from HSBC’s private bank in Zurich by Herve Falciani, a French software engineer, which contained account information pertaining to 6,600 accounts held by UK residents. This significant development once again underlines HMRC’s desire to stamp out tax evasion linked to funds retained in offshore accounts and signals a hardening of HMRC’s attitude. News of these arrests may counter the concerted criticism of HMRC’s crackdown on tax evasion. Some commentators have accused the taxman of shying away from mounting criminal prosecutions and the deterrent message that they convey to the tax-paying population. We will of course keep you updated on this development.

1. Bark & Co
Solicitors
London
News

3. Bark & Co Solicitors London News:
HMRC Crackdown on Offshore
Accounts
It has recently come to our attention that two
Britons have been arrested on suspicion
of using Swiss Bank accounts held with
HSBC to evade UK taxes. This could lead
to the first criminal prosecutions in a three
year clampdown on offshore tax evasion
by HMRC.

4. According to our source, HMRC made the arrests
late last year and both individuals have been
released on bail pending charges. These arrests
are thought to have resulted from the review of
the information stolen from HSBC’s private bank
in Zurich by Herve Falciani, a French software
engineer, which contained account information
pertaining to 6,600 accounts held by UK
residents.

5. This significant development once again
underlines HMRC’s desire to stamp out tax
evasion linked to funds retained in offshore
accounts and signals a hardening of HMRC’s
attitude. News of these arrests may counter the
concerted criticism of HMRC’s crackdown on tax
evasion.

6. Some commentators have accused the
taxman of shying away from mounting
criminal prosecutions and the deterrent
message that they convey to the tax-
paying population. We will of course keep
you updated on this development.

7. In a similar vein, news reached us yesterday that the
whistle-blowing website WikiLeaks has been provided
with a raft of information concerning 2,000 wealthy
individuals and corporations that held accounts with
Bank Julius Baer in the British Virgin Islands tax haven.
Rudolf Elmer, who was previously employed by Julius
Baer to oversee the Caribbean operations of the Swiss
Bank for eight years until he was dismissed in 2002,
handed over the discs to WikiLeaks founder Julian
Assange during a press conference.

8. Some commentators have accused the
taxman of shying away from mounting
criminal prosecutions and the deterrent
message that they convey to the tax-
paying population. We will of course keep
you updated on this development.

9. Bark & Co
Solicitors

10. Rudolf Elmer is currently standing trial accused of coercion
and breaching banking secrecy laws in Switzerland and
his motive in supplying this information is to expose
mass potential tax evasion. He told the Observer
newspaper last weekend that those named in the
documents come from “the US, Britain, Germany,
Austria and Asia, and include business people,
politicians, people who make their living in the arts and
multinational companies-from both sides of the Atlantic.”

11. It is unclear whether HMRC has been
passed this information, however it is clear
that the taxman will be monitoring
developments very closely. It is also likely
that those individuals who might be
affected and have tax issues stemming
from the ownership of such accounts may
be seeking urgent professional advice.

12. This development reinforces the message that if
you have an undeclared offshore account, then
you should come forward voluntarily and resolve
the issue before HMRC comes calling. It is no
longer an option to bury your head in the sand
and hope it will all go away.
We will update this story as it develops, however
should you require any further information,
please do not hesitate to get in touch.