Lloyds Offshore Scam Investigation
Published / Last Updated on 21/09/2009
Lloyds Offshore Scam Investigation
Both the financial regulator, the Financial Services Authority and the UK tax authorities, HMRC, are believed to be investigating Lloyds Banking Group.
On the BBC Panorama programme last night, allegations were made that UK resident investor clients via Lloyds Banking Group offshore in Jersey were being encouraged to avoid UK taxes by investing via Hong Kong to avoid the EU Savings Directive.
In short, the EU Savings Directive requires that States, including many offshore tax havens, are required to share information with tax authorities about investors, their accounts and interest they receive. This then means that taxes are paid as is the law rather then being avoided.
Tax evasion is a criminal offence in the UK as well as many other states and many governments are cracking down on tax evasion and illegal money laundering scams.
Hong Kong, whilst having a strong UK Banking presence, is now Chinese again, and has signed up to any information sharing agreements.
This scheme, which possibly is not illegal, as far as the Bank is concerned, becomes illegal if an investor fails to disclose the interest they receive. The program has caused uproar given that Lloyds was ‘bailed out’ by the tax payer to the tune of £17bn yet is allegedly encouraging tax evasion.
Another bank bailed out by the people, Northern Rock, was also accused of tax avoidance schemes in Guernsey when the Panorama reporter also approached them for investment advice.
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