After all of the abuse UBS has taken for helping people hide their assets from tax authorities, in addition to the seemingly endless stream of losses, the Swiss should be giving the bank a round of applause. Although it's utilizing unconventional methods, UBS is helping to improve the Swiss employment picture while also providing the catalyst for a new revenue stream for the government.
On the job creation side, the Swiss government intends to hire 5 temporary judges to handle the up to 500 appeals expected from UBS clients trying to argue their way out of not being fed to the IRS wolves. Dozens of tax experts and auditors will also be called on to guarantee that tax cavity searches will be performed only on the truly worthy
On the revenue front, the UBS case has led to a proposal from Urs Roth, CEO of the Swiss Bankers Association to charge a withholding tax on the earnings of foreign investors.
Mr. Roth said the tax system would cover dividends, income from collective investments and capital gains. It would apply to private individuals as well as legal entities, and be broader than a planned new European Union savings-tax directive. It eliminates the risk of criminal prosecution or civil sanctions, the banking association said.
So, really, what more do you want from these guys? Profits?! One step at a time.