Robert Watts. Sunday Times. London (UK): Sep 4, 2011. pg. 1
NEARLY 800 wealthy British clients at HSBC are being investigated by the taxman for "serious tax fraud" after stashing money in Swiss bank accounts.
Thousands more of HSBC's customers face having their personal tax affairs probed unless they come forward soon, as HM Revenue & Customs combs the records of 7,000 customers that were stolen by a former member of the bank's Swiss staff.
Accountants acting for those already under investigation by HMRC say those embroiled include celebrities and prominent figures in the City.
"We are talking about household names here," said one accountant. HMRC has sent letters announcing the launch of an investigation to almost
800 of the bank's clients in recent months."You are suspected of serious tax fraud," the letter reads. "We will undertake an investigation into your personal tax affairs. We will also undertake an investigation of the tax affairs of any company or other entity that may have an impact on your personal tax affairs."
A senior source at HMRC said it expects to raise hundreds of millions of pounds for the exchequer from these investigations.
The names and account details were garnered from the "Falciani List", records pilfered by disgruntled former IT worker Herve Falciani.
None of the individuals affected will be able to make use of the recent deal struck between the British government and the Swiss authorities. Under the pact, people with assets hidden in Swiss bank accounts will be landed with a one-off tax bill to settle their arrears, plus a withholding tax from 2013 onwards. HMRC is conducting the investigation under "Code of Practice 9" -- a probe of an individual's financial affairs over the past 20 years. Those found guilty of tax evasion face paying any due tax, plus interest. They will also incur a penalty of up to 200% of the outstanding tax.
Fiona Fernie, tax investigation partner at BDO, the accountancy firm, said: "I strongly advise any HSBC customers who believe they could be on this list, but have not yet received one of these letters, to approach the Revenue and make a disclosure straight away."
The bank said: "HSBC does not condone tax evasion and seeks to comply with the letter and spirit of the law in all the countries and territories in which it operates."
Credit: Robert Watts Economics Correspondent [Illustration] Caption: An invitation you can't refuse