Is the end nigh for the numbered Swiss bank account?
Landmark agreements, such as that between UBS, the Swiss government, and the US government, and that between the UK government and Liechtenstein, may spell the end of being able to safely and secretly store away money in an offshore account. Offshore financial services will still be available, but British citizens will be obliged to accurately disclose any earnings for tax purposes.
Perhaps due to the global financial crisis, people’s appetites for tolerance of tax evasion seems to have eroded somewhat. It’s galling enough hearing about the multi-million dollar profits and huge bonuses flowing to the finance sector, but the thought that the cash-strapped governments that bailed out these miscreants are being cheated out of money that can be used to pay for education and health care, and even keep tax rates lower for everyone, may be too much to bear.
There have been a number of studies carried out regarding people’s attitudes to the ethics of tax evasion. It seems there is some tolerance for tax evasion, but only in certain circumstances, such as when governments or officials are seen as corrupt, or the choice is between paying taxes or feeding your family. Most people, however, don’t think that tax evasion is ethical.
So, it’ll still be possible to have the cool, racy offshore account, but it’ll come with a taxable label. Of course, you could deposit your laundered money with one of a myriad willing Nigerians who will happily keep it secret from the government, and from you too, no doubt. The rest of us will just pay our dues.