"Government reaches deal to access to UBS accounts with up to $18 billion that U.S. investors might have used to avoid taxes.
NEW YORK (CNNMoney.com) -- The Internal Revenue Service announced Wednesday that it has reached a deal with the Swiss government, gaining access to thousands of UBS AG accounts that Americans might have used to avoid paying taxes.
IRS Commissioner Douglas Shulman said that it had gained access to about 5,000 UBS (UBS) accounts held by rich American investors. In a teleconference with reporters, Shulman said these accounts have held $18 billion in assets at one time, though he did not have a current tally for their value.
The announcement is the result of a settlement that the IRS and Switzerland-based UBS reached earlier this month to track down and identify wealthy Americans who have avoided paying taxes by hiding their assets in offshore accounts. Shulman said the deal should deter Americans from evading taxes in the future.
"Thousands of taxpayers who avoided paying taxes in the past are being brought into compliance," said Shulman. "As this agreement demonstrates, the world of international taxes has drastically changed."
Shulman said that investors can still "get right with their" government by reporting their tax activity by the Sept. 23 voluntary disclosure deadline.
Can you say bye-bye to banking secrecy in Switzerland.
I am sure every major G8 country is lining up now to sue Switzerland and threaten them in the same way as the US did, starting with Germany, UK, France and Italy. Furthermore, these agreements tend to be retroactive meaning even if you close your secret Swiss bank account now, you can be reported later on.
Retroactive - In almost all nations a retroactive law is illegal or unconstitutional. If the bank account is closed before the treaty goes into effect then the bank account should remain sealed under the old pre-treaty bank secrecy laws. Retroactive laws are a serious inasive force against a free democratic nation usually not tolerated except in the most awful police states.
As an aside the Swiss banks seem to have a massive amount of middle eastern oil money and those guys pay not taxes anywhere so this will not affect them.
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As an aside the Swiss banks seem to have a massive amount of middle eastern oil money and those guys pay not taxes anywhere so this will not affect them.
Correct, also don't forget about former Soviet Union countries : )
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Do all your offshore stuff legally. There are a number of ways to get legal tax free offshore investing. I repeat, obey the laws of your land since there are legal ways to do stuff offshore that is tax free until you take money out and then you may have a legal tax obligation depending on your citizenship and residency at the time you make the withdrawal.
They need the money for their massive debit load which is an every growing percentage of their GNP. The US is facing very serious issues in the future that are only growing worse each year due to expanding social programs, rising health care cost, continued cost associated with Iraq and now Afgan occupation forces as well as dwindling tax revenues associated with the demi-depression.
Swiss no longer a tax heaven. US already got enough information from Swiss and India is now pressurizing swiss govt to give the acct details of indians. Hope other countries will also follow this route to eradicate black money.
Another mistake these people made was having their money in a bank with a branch in the U.S. That bank in North Cyprus does not have any branches in the U.S. that would give the fascist powers leverage to force them to cough up names. Not recommending any bank but just giving this as an example.
Swiss secrecy is not dead. This is for sure. US is creating problems to Swiss banks that's sure but CH is going to release data of clients ONLY if there is documentation probing that clients have suspicious activities.
By the way, US is in the top 3 off-shore country list.
IRS gets access to 5,000 Swiss bank accounts
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