Since the financial crash Calls
for a crackdown on bank secrecy have been increasing, as governments are increasingly
desperate to raise more taxes to support their finances. Luxembourg will now
move to strengthen co-operation with foreign tax authorities. Germany signed a
tax evasion treaty with Switzerland - another European banking centre known for
its secrecy – earlier in the month. The treaty aims to give the German tax
authorities the ability to claw back taxes from their citizens who may be
hiding money in Swiss banks. Austria, the only EU hold out against banking
transparency, has attacked the UK as an “island of the blessed for tax evasion
and money laundering".
Austria’s finance minister, Maria Fekter, has been
under intense pressure to put an end to Austria's long-held tradition of
allowing foreigners to bank secretly. She has attempted to deflect attention
towards the UK. Fekter, a member of Austria's governing coalition, says the
European Union cannot force Austria to reform its controversial banking secrecy
laws without also forcing the UK to crack down on tax havens in its
jurisdiction. Across the pond, the US Government is trying to crack down on its
citizens hiding money offshore and is due to start talks with Austria soon. These
recent developments leave David Cameron and George Osborne, staunch defenders
of the City of London and Crown Dependency Tax Havens, which coincidently
happen to be centres of worldwide money laundering operations.
