The head of Argentina’s tax authority has petitioned the Bermuda Government for information after it demanded embattled bank HSBC return $3.5 billion in offshore funds.

Ricardo Echegaray of tax body AFIP — at a briefing at the Argentinian Embassy in London — claimed the bank had helped its clients in the South American country to dodge taxes and threatened the stability of the country’s government. He said the country had approached tax authorities in the British Virgin Islands and Uruguay, as well as Bermuda.

Mr Echegaray said: “HSBC built a platform to help clients evade tax.”

He added: “Without collection, there is no government, there is no public policy, there is no state, that is to say there is no country.”

The move came after the Argentinian regulator last November accused HSBC of helping more than 4,000 clients evade tax — which HSBC Argentina denied and added the bank respected Argentinian laws.

But the Argentinian government filed a criminal complaint against the bank for tax evasion and illegal tax association, which carry penalties of up to ten years in prison.

And Mr Echegaray revealed that on Sunday police had raided HSBC’s Argentinian offices in search of documents.

Police are said to have found documents that indicated most of the paperwork associated with the accounts were stored at a firm called Iron Mountain, which was the victim of an arson attack in February last year.

According to a Reuters report, Mr Echegaray said: “We would like to know if HSBC Holdings PLC supported the behaviour of the authorities of the Argentine branch.

“Secondly, we expect the repatriation of funds by HSBC Holdings PLC that to our knowledge amount to $3.5 billion.”

The UK authorities have also asked Argentina for information about its probe into HSBC.

HSBC said in a statement it was cooperating with the Argentinian investigation.

HSBC Bermuda chief Richard Moseley said yesterday that he was not aware of any request for information from Argentina in relation to this matter.

HSBC last month admitted failings in compliance and controls at its Swiss private banking after leaked documents suggested it had helped rich customers hide millions of dollars of assets in a period up to 2007.

The bank added it had improved controls at the private bank and closed many client accounts.

HSBC also faces a probe by the US — which has stepped up efforts to find out if it helped American citizens evade taxes.

The bank three years ago paid out a record $1.9 billion fine after US authorities said it had become a favourite financial institution for drug traffickers and money launderers between 2005 and 2010.

Neither the Ministry of Finance or the Bermuda Monetary Authority responded to requests for comment yesterday.