HSBC Tax Avoidance, private bank account with HSBC

HMRC has been heavily criticised after it emerged that it has helped thousands of its private customers evade tax through offshore bank accounts in Switzerland.

Britain’s biggest bank is alleged to have helped clients evade tax and stay ahead of the changes in law through using offshore accounts. HSBC is also accused of writing to customers when the European Savings Directive was launched in 2005 to offer new methods of avoiding tax.

The aim behind the European Savings Directive was that Swizz banks would return any tax owed on the customers' bank accounts to the relevant tax authorities.

Swiss bank accounts are not illegal but they have been used by many to avoid paying tax deliberately. Tax evasion is classed as deliberately avoiding tax and this practice is illegal.

Information obtained following leaks by a whistleblower in 2007 at HSBC’s private bank in Switzerland show that over 100,000 customers round the world had made use of the offshore bank accounts. It is reported that almost 7,000 customers were British, with many having not declared the bank accounts to HMRC.

HMRC reported that it had identified 1,100 individuals who had not paid taxes, with £135m being recovered through unpaid tax, interest and penalties.

Many individuals who held assets and bank accounts offshore have taken advantage of tax disclosure facilities introduced by HMRC, such as the Liechtenstein Disclosure Facility (LDF), for example.

With pressure being mounted on HSBC following these allegations, customers who held private bank accounts in Switzerland should take action before falling onto HMRC’s radar.

Some voluntary disclosure facilities offered immunity from prosecution and favourable repayment terms when compared to the consequences of falling under a full tax investigation by HMRC, which in extreme circumstances can mean criminal prosecution.

If you held a bank account with HSBC in Switzerland and would like to discuss your circumstances in complete confidence with experienced tax investigations professionals you can call us on 0113 387 5670 or fill out an Enquiry Form and we will contact you straight away.