The Treasury announced that some British colonies including Bermuda and the Cayman Islands have stated and signed legal agreements to share tax information with the government for the future.
The aim of this move is to make people avoiding tax by hiding their money in offshore tax havens, stop doing this.Many legal and business documents have been signed, but finally the outcome is here.
Jersey, Guernsey and the Isle of Man also made such deals not long ago.
The mentioned states will have to share bank account details, including names, addresses, dates of birth, account numbers, balances and payment details at the very moment they receive them.
The same information will also have to be shared with authorities in France, Germany, Italy and Spain.
Other territories which are about to become part of this scheme are Anguilla, the British Virgin Islands, Montserrat and the Turks and Caicos Islands.
Chancellor George Osborne has been working closely with the Organisation for Economic Co-operation and Development (OECD) on the issue so he commented: “This represents a significant step forward in tackling illicit finance and sets the global standard in the fight against tax evasion.
“I now hope others follow these governments’ lead and enter into similar commitments to this new level of transparency, removing the hiding places for those who seek to evade tax and hide their assets.”
According to Rosie Sharp of Global Witness, a group campaigning on the issue of offshore tax havens, the key for making that work was the fast exchange of information.
When UK starts sharing information with countries overseas and they respectively start sending information back things would work well and fast.