Department Of Justice To Go After Tax-Evading HSBC Clients


Are you a wealthy individual who hasn't exactly paid taxes, per se, or as much as you should have, in quite some time? Did you do so via HSBC India, which set you up with some secret accounts? Did you think you were being pretty clever, not going with UBS, which would've been like sticking a sign on your back proclaiming "I owe the government millions in taxes and unpaid parking tickets"? The DOJ would like to let you know that time's up, smart guy.

The Justice Department is expected to file a lawsuit Thursday that seeks to force HSBC India to reveal the names of U.S. customers with secret accounts, according to a person familiar with the matter. The department is expected to file the legal action in a San Francisco federal court, this person said. The move opens up a new front in the U.S. crackdown on tax evasion and comes days before the April deadline for taxpayers to file individual returns. To date, U.S. efforts against offshore tax evasion have focused heavily on Swiss bank accounts.