HUNDREDS of islanders have had their financial affairs passed to the UK tax authorities, it was revealed today. Shocked residents have received letters from their banks and credit card companies telling them details of their accounts have been given to HM Customs and Revenue.
The release of information comes as the UK Government continues its crackdown on its residents who use offshore accounts to evade tax.
Customs have been granted a court order to access people’s finances, with islanders who have had a UK address and moved to Guernsey and Alderney in the last six years most likely to have been affected.
‘I was shocked when I read the letter from my bank saying that they’d given Customs all my private financial information,’ said one Alderney resident, who did not want to be named.
‘I’ve lived in the Channel Islands for a year, have done nothing financially untoward and yet all my details have been handed over to the tax authorities.’
He added: ‘I don’t feel confident with the UK Government’s track record of protecting sensitive information - look what happened to the junior doctors recently when their private details were published on a website.’
A number of people who received the letter have complained to Guernsey’s data protection commissioner saying that the UK authorities have unfairly accessed private information.
They claim banks and credit card companies have breached their duty of confidentiality by giving Customs access to their accounts.
Peter Harris, the commissioner, said the court order allowing Customs to access private financial information was ‘too wide’.
‘It’s a very broad sweep,’ he said. ‘It’s looking for a few fish but has picked up the contents of the ocean.
‘Customs have no right whatsoever to ask for the financial details of people who are living in Guernsey or Alderney and who are paying tax in the Bailiwick.’
Mr Harris revealed he would consider taking action against HM Customs and Revenue if he received enough complaints.
‘If there are lots of complaints I can go to the UK information commissioner who has powers to ask Customs to destroy the information they gained,’ he added.
‘They can also amend the court order allowing them to access people’s financial information or instruct the banks that they don’t have the right in future to give up their clients’ information.
‘Residents who have received these letters can contact my office on a voluntary and confidential basis and copies of any communications would be particularly welcome.’
Anyone wanting to contact the data protection commissioner can do so by telephone on 742074, by fax on 742077 or by email at dataprotection@gov.gg.
Article posted on 22nd May, 2007 - 12.00am
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