Undeclared accounts are the latest bane for Swiss banks, which are being pushed to the brink by U.S. authorities to release details of their U.S. accountholders who park assets there in order to avoid paying U.S. taxes. Many Swiss banks have what are referred to derogatively as, “recalcitrant accountholders.” Recalcitrant accountholders are those who, despite the bank’s prodding, refuse to report their foreign accounts to the IRS. Very simply, this group is what stands in the way of a “cooperating” bank opening up the kimono – i.e., by sending the U.S. government the records of its U.S. accountholders – and the pot of gold at the end of the rainbow: immunity from prosecution and overbearing penalties. Soon, the Foreign Account Tax Compliance Act (FATCA) will change all that. If the United States’ demands to expose tax-evaders are fulfilled, all data on these recalcitrant Read more
Tag Archive for Swiss Banks
Neutrality is Switzerland’s unwritten motto. This devotion to conflict avoidance kept the Swiss out of two World Wars. The Swiss are known for their diplomacy, hospitality, and the ability to keep a secret. So, it came as a shock when 73 Swiss banks joined ranks to inform the U.S. Department of Justice and the IRS, politely but firmly, that they would not be signing a proposed amnesty deal under FATCA.
The Basic Facts of FATCA
In March of 2010, the Department of Justice and the IRS were given a new enforcement weapon. The Foreign Account Tax Compliance Act (FATCA) has three primary objectives regarding foreign financial institutions: Read more
Yesterday we posted “Monday was the Swiss Bank’s Deadline to Reveal Hidden US Accounts to the IRS!” which discussed that approximately 300 Swiss Banks have until the end of today, Monday December 16, 2013, to decide whether to turnover their records to the Internal Revenue Service.
Today Walliser Kantonalbank became the latest Swiss bank to Accept United States Deal to avoid prosecution.
In a statement, Walliser Kantonalbank said that it had never focused on acquiring American clients but that it was unable to guarantee that all U.S. customers had fully complied with their United States tax obligations. Read more
Approximately 300 Swiss Banks had until the end of Monday December 16, 2013, to decide whether to turnover their records to the Internal Revenue Service. “I can confirm that the deadline is this evening, at the end of the business day, “a spokesman for Swiss financial market regulator FINMA, told AFP, refusing to say how many banks had already signed up to take part in the program.
On Thursday, August 29, 2013, we previously posted “Swiss Banks Agree to Plan to End Past US Tax Evasion Issues!“) where we discussed that under a deal reached between Bern and Washington, Swiss banks are ready to pay big fines for sheltering United States tax fugitives under the terms of a new deal approved by the Swiss Government. Read more
Bank Frey has become the second of Switzerland’s smaller banks to announce it is ceasing operations as a result of the United States government’s drive against cross-border tax evasion.
The organization, founded in 2000, says it is solvent and will not be liquidated. It has merely decided that the costs associated with the US tax dispute, together with increasingly difficult market conditions, ever-growing regulations and the unsustainable requirements’ have become too high to justify its banking operations.
Frey & Co.’s Executive Board, together with shareholders, came to the decision last week. Frey & Co. is currently the subject of a Department of Justice investigation, meaning that it is unable to take advantage of a settlement deal offered by the DOJ to Swiss “Category 1” banks.
In August, the DOJ and the Swiss Federal Department of Finance unveiled a scheme designed to encourage Swiss banks to cooperate in the DOJ’s investigations into the use of foreign bank accounts to commit tax evasion. (See Swiss Banks Agree to Plan to End Past US Tax Evasion Issues!).
Under the program, participating banks are: Read more