HSBC Geneva: perhaps there's some mistake here?

It seems that a big story, some five years ago, has come to the attention of politicians, the media and now, the public. And, as it becomes clear that this information had been kicking about for some time, I find myself a bit perplexed.

There is no doubt that a press release was issued in 2011, confirming the existence of a list of British taxpayers who held accounts with HSBC in Geneva. The now ex-HMRC senior official, David Hartnett told the Treasury Select Committee that September that such a list was working with HMRC, and it was known HSBC had been strongly linked to said list, even if official confirmation had not been given.

The press release included what looks like a pretty standard 'cut and paste' quote from the relevant minister, David Gauke, which might imply that he knew about the list (admittedly, he may not have read the press release but one might assume that it wouldn't have been issued without him being made aware).

On that basis, elements of all three main political parties in Westminster would have known about the list, although not necessarily the role of HSBC in helping their clients to shield their assets from the various national tax authorities. They might very easily not have made the connections though. And nobody seems to doubt that HMRC acted upon the list, although whether or not the action taken was sufficiently firm is another question - albeit one that can't be answered to everyone's satisfaction due to the right to taxpayer privacy.

We don't know exactly what information HMRC were given, what rights they had to use it and, more importantly, transfer it on, and we also can't judge how cost-effective it would have been to prosecute more cases - if they aren't found guilty, you can lose everything in terms of additional tax raised.

So, it looks as though the original story was rather too complex for most key players - media and politicians - to understand, and now that HSBC have been, quite deservedly, hung out to dry, everyone is running to catch up, and to condemn those bits that they think they might understand (they probably still don't).

And, whilst HMRC are obliged to shelter behind the walls that taxpayer confidentiality provides, there will be a lack of clarity which will allow those with little understanding of taxation, but a tremendous sense of outrage, to volley accusations at the Government and the Official Opposition for weeks to come. I fear that, as was the case in the Vodafone saga, we will earn very little of value but squander further the credibility of bankers and politicians alike.