ICYMI a paragraph by me on international tax reform in an expert panel published by Prospect Magazine, also including other people who actually know about this stuff.
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Prospect Panel on international tax reform
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A little too pessimistic.
There are a unilateral solutions that don’t rely on international coordination. For example (as a framework):
1. All UK residents/citizens ewliable for UK tax on their worldwide income. Credit given for overseas tax paid – as is the case presently. This is what the US does broadly.
2. Non-disclosure of a source of income attracts heavy penalties. If the undisclosed source is in a haven, then the penalties are doubled. Put hidden capital at risk.
3. UK banks must disclose to HMRC any transfers into/out of UK where the other end of the transaction is in a haven. (council of perfection – stick a withholding tax on those payments). Penalties on banks if they get this wrong, or knowingly try to get around the rules by moving cash via a “good” location first.
4. Apply pressure on the havens to end secrecy.
Sort of a turbocharged FATCA regime. Not suggesting that it would be easy – but it’s mainly just a matter of political will.
Roy
Thanks for these.