HSBC Files: France Denies Restricting UK Use

Written By Unknown on Jumat, 13 Februari 2015 | 22.56

France's finance minister has cast doubt on UK government claims that the UK was refused permission to pursue criminal charges using the HSBC files.

Conservative minister David Gauke and HMRC boss Lin Homer told parliament on Monday that British authorities had been restricted by treaties with France, which limited their ability to take on alleged tax evaders.

They said France had only given the go-ahead that day for more serious cases such as money laundering to be pursued.

But in an interview with Le Monde, French finance minister Michel Sapin said he could not understand the position set out by officials in the UK.

He said:  "I have not understood the comments made by the British authorities. The data on HSBC was transmitted to them in 2010, in the framework of the bilateral conventions that bind us.

"Nothing has been said to them since. These conventions do restrict the use of the information to tax purposes.

"But if the British tax office wants to bring court cases, it is entitled to do so. The rest is a matter of judicial co-operation."

Mr Sapin also denied that UK authorities had approached France as the scandal deepened this week.

A fierce political row broke out this week after a report by a network of investigative journalists revealed HSBC's Swiss banking arm had helped wealthy customers avoid tax and hide millions of dollars.

The Commons Treasury Select Committee has announced it plans to investigate the allegations against the bank - taking oral evidence from both HSBC and HMRC.

Herve Falciani, the whistleblower who lifted the lid on wrongdoing at the bank, has said he is willing to help a parliamentary probe and it is likely he will be invited to give evidence, according to Sky News Political Editor Faisal Islam.

Speaking to the Public Accounts Committee on Wednesday, Ms Homer said HMRC had asked for permission to pursue financial criminals when it received the data in 2010.

She said: "We have been talking to the French throughout that period but we've only just had permission to widen the scope of this."

She said the French had been asked in the past to allow investigations to proceed, but had only given permission "in the last day or two".

Labour's shadow treasury minister Shabana Mahmood has called on Mr Gauke to urgently explain the apparent contradiction of his House of Commons statement by Mr Sapin.

The development came after Ed MIliband challenged the Prime Minister over whether he agreed with former Tory party treasurer Lord Fink that "everyone" engages in tax avoidance, which is not illegal.

Labour has also dismissed claims that Mr Miliband avoided tax on the sale of his parents' former home as "a straightforward lie".

The party's leader has confirmed that his mother Marion set up an arrangement known as a deed of variation after the death of his father Ralph, which is understood to have altered provisions relating to the house in his will.

But Labour said he had since sold his share to his brother David, paying the full capital gains tax of 40% on the sale.

UKIP's Nigel Farage said Mr Miliband would come to regret using the word "dodgy" about Mr Cameron and Tory donors in relation to tax avoidance.

Mr Farage said he had personally never avoided any tax and criticised Lord Fink's comments.


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