tax evasion

credit suisseWhich was nice of her, in the event the bank is running low on funds and needs to move some assets around/pay a visit to the neighborhood pawn shop/etc. Every day the payment is late, though, interest rates start kicking in and Brady Dougan is paid a visit by a guy named Bunky. Read more »

A former UBS AG banker gave a primer on the workings of Swiss bank secrecy to a Florida jury hearing the tax-conspiracy trial of Raoul Weil, who once ran the bank’s global wealth-management business. Hansruedi Schumacher told Fort Lauderdale jurors today that he oversaw UBS accounts for about 15,000 U.S. clients in 1999, and most were structured to cheat the Internal Revenue Service. Clients shunned calls or account statements from their Swiss bankers, preferring personal visits, usually in hotels, he said. Bankers often changed hotels to avoid suspicion from the staff. [Bloomberg]

As its name indicates, Deutsche Bank is not a Swiss bank. But it does have a Swiss banking unit, for the same reason every other bank has a subsidiary in a country home to fewer people than New York City, which is the reason why said country of eight million people living on top of mountains has exactly one notable industry: banking. Historically speaking, the kind of banking that means you might not have to pay taxes.

Of course, this sort of banking has run into some troubles, recently, not least of all from Deutsche Bank’s home country. And without Angela Merkel’s willingness to throw down á la François Hollande with Barack Obama, and frankly without much risk to itself, the Frankfurters aren’t putting up a fight. Read more »

At least 10 Swiss banks have withdrawn from a U.S. programme aimed at settling a tax dispute between them and the United States, Swiss newspaper NZZ am Sonntag said on Sunday, quoting unnamed sources. Around 100 Swiss banks came forward at the end of last year to work with U.S. authorities in a programme brokered by the Swiss government to help the banks make amends for aiding tax evasion. “At least 10 banks that had decided at the end of 2013 to pay a fine have withdrawn their decision,” NZZ am Sonntag said, quoting unnamed lawyers and auditors. It did not name the banks concerned. The newspaper said the banks were convinced they had not systematically broken U.S. law and lawyers of the U.S. Department of Justice had actually been surprised to see them take part in the programme and did not object to the banks leaving the programme. [Reuters]

Several Swiss banks have threatened to freeze American clients’ accounts unless they prove they are, or take steps to become, tax compliant, as the country’s lenders hurry to resolve a tax evasion dispute with the US. The moves – made by a number of banks, according to three people familiar with the situation who did not disclose the identity of the banks involved – come before a deadline at the end of July for banks in a programme set up by the US Department of Justice last year to show which American clients conform to US tax requirements. However, the validity of the banks’ approach has split legal experts. [FT]

In case it was unclear already. Read more »

  • 28 May 2014 at 10:30 AM

U.S. Tax Authorities Have Skied Enough

The Justice Department’s tax-cheat division is ready for some fun in the sun. Read more »