Hiding cash in tax haven ‘at an end’

Governments and regulators across the world have cracked down on tax evasion in the wake of the financial crisis, a drive which has seen the United States and Europe heap pressure on Switzerland, Liechtenstein, Monaco and others to surrender more information.

“With all the reforms today that have been done by various governments, tax havens – that is to say people with secret bank accounts hidden somewhere to avoid the tax authorities – in my view, that is over,” SocGen chief executive Frederic Oudea said.

Citing the example of Switzerland, he said: “What is happening right now means that nobody will take that kind of risk anymore.”

Swiss banks last month publicly apologised for their role in helping tax cheats, following a landmark settlement with US authorities that would allow lenders to come forward over tax evasion by US customers and avert prosecution by paying a fine.

The head of UK advocacy group Tax Justice Network, John Christensen, said the idea that the days of tax havens were over at this stage “remains entirely wishful thinking”.

“The use of secret bank accounts is rapidly being superseded by using offshore trusts and secret foundations,” he said.

“We’re also seeing a wider number of jurisdictions, with Hong Kong, Singapore, Mauritius very rapidly gaining market share,” he said.