Swiss-U.K. Tax Agreement May Be ‘Revenue-Negative,’ Group Says

Switzerland’s decision to impose withholding duties on untaxed British funds may generate only a “fraction” of anticipated revenue, the Tax Justice Network said.

A series of loopholes means the U.K. government is likely to recoup just 10 percent of between 4 billion pounds ($6.4 billion) and 7 billion pounds envisaged by the bilateral treaty, the campaign group said in an e-mailed statement today. The agreement may even be “revenue-negative,” with Britain’s government pulling in less from Switzerland than it does today.