Dodging Taxes Just Got Harder

While only a small proportion of the U.S. population has actually been suspected of using Swiss bank accounts to avoid paying significant sums of tax to the government, the days may be numbered for this dubious practice. That is because the United States and prominent Swiss bank UBS AG have reached an agreement that will expose secret account holders and deter any future secret accounts. 
 
Although the details of the deal have not yet been made public, many experts believe that the deal will involve the Swiss bank disclosing the names of the illicit accountholders in a way that does not violate the bank’s secrecy clause. As part of the proceedings, those who already hold secret accounts will be encouraged to come forward voluntarily, considering that their names will eventually be exposed anyway.
 
For all intents and purposes, the deal marks the end of Switzerland’s questionable status as a tax haven for both Americans and Europeans. Despite the hard realities of the deal, though, tax experts are expecting many accountholders to continue trying to avoid taxation, instead taking their chances to save their money.

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