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Tensions between foreign banks and the government have increased as a result of a Revenue & Customs crackdown on offshore accounts, planned tax increases for foreigners in living the
Mr Treadwell said: “The government must ensure that it continues to provide a supportive environment in the UK for foreign banks to grow their business, and not introduce measures which could threaten London’s position as the major international financial centre or send out messages which [imply] London is not a friendly place for foreign banks.”
“The government is in danger of going down this route with its recent announcements on, for example, offshore accounts, proposed taxation changes for non-domiciled residents, changes to residency rules and the new work permit system. They must enter into regular dialogue with the foreign banking community and take notice of their concerns.”
The dominance of
The AFB, together with the British Banking Association and the Building Societies Association, were dismayed by an approach last year to some 150 banks and licensed deposit takers, urging them to co-operate with a crackdown on offshore tax evasion by filling in questionnaires concerning record keeping and information technology systems. The Revenue said this would simplify and streamline its efforts to obtain legal notices requiring institutions to hand over account information for British residents with offshore accounts.
The banking associations told the Revenue that its questionnaire raised “considerable concerns” for their members, stressing that they could not compromise their obligation of customer confidentiality without the compulsion of law. “If this principle [confidentiality] were to be publicly challenged the shock ... could be fundamental and destabilising,” the associations said in a letter.
The BBA said that after the Revenue’s loss of personal data for child benefit recipients, it would be premature to provide more information on offshore account holders to Revenue & Customs. The AFB also voiced particular concerns about possible conflicts with the banking secrecy laws in other jurisdictions.
Dave Hartnett, the acting chairman of Revenue & Customs, said some banks had filled in the questionnaires, while those that had not would be the subject of more searching inquiries by the Revenue, prior to its application for an information notice from the Special Commissioners.
Many foreign bankers based in