EveryJoe » tax evasion

Amnesty Period Ends for Tax Evaders

Stephen Kersey — Sun, 18 Oct 2009 03:36:37 +0000

Accountholders of secret Swiss bank accounts that failed to pay the appropriate taxes on their money were offered a limited-amnesty deal by the government so that they would come forward. However, the amnesty period has now ended, meaning that the accountholders that come forward now will face an increased chance of criminal prosecution.

Image: istockphoto

More than 7,500 accountholders came forward to take advantage of the more lenient terms. Those that still want to turn themselves in, though, can still go through one of the IRS’s longstanding programs in order to do so. In fact, officials do not expect the end of the leniency period to stop people from turning themselves in.

The accountholders that still have not turned themselves in will most likely eventually be found, as Switzerland formed a deal with the United States that would force banks to turn over the information of the secret accountholders to the appropriate American officials. For that reason, accountholders are encouraged to turn themselves in so that they do not face criminal prosecution or jail time.

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Amnesty Period Ends for Tax Evaders

UBS Client Admits to Secret Account

Mark Ellis — Fri, 25 Sep 2009 20:52:37 +0000

Following a deal between the IRS and Swiss bank UBS AG, an institution in which accountholders from all over the world could hide their money from their country’s tax, the identities of American accountholders have been made available to the proper authorities. This has led to cases like that of Juergen Homman, a New Jersey businessman, who has pleaded guilty to failing to tell the authorities about a $6.1 million account he had with UBS.

Homman pleaded guilty in a New Jersey federal court to not disclosing the account on tax returns from 2001 to 2007 and to not filing the separate reports required for offshore accounts. He is the fifth client to be charged this year on a tax case involving a UBS Bank secret account.

UBS, the largest bank in Switzerland, has agreed to pay $780 million to the United States to avoid prosecution for helping American clients to avoid taxes. It also agreed to give secret data to the IRS concerning 250 clients, also agreeing to give information about 4,450 clients last month.

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UBS Client Admits to Secret Account

France Gets Names of UBS Accountholders

Mark Ellis — Mon, 31 Aug 2009 01:34:32 +0000

Although the United States was the first country to undergo the process of extracting the names of tax-evading secret accountholders, France has followed suit in its crusade against French tax evaders. The European country, which has expressed its desire to be among the lead players in the global financial system, has managed to acquire over 3,000 names, many of which it suspects of tax evasion.

France has given the 3,000 suspected tax evaders a chance to come forward and accept their punishment, promising to take proper action against them if they choose to not come forward instead. The move comes after French President Nicolas Sarkozy set several initiatives in place to ensure that French bank leaders do not compensate themselves unjustly.

Switzerland, which has long been the world’s largest offshore banking center, has suffered recently from being named by the Organization for Economic Cooperation and Development a tax haven. By cooperating with France, Switzerland will give France taxable access to about $4.3 billion in money that would have been otherwise invisible.

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France Gets Names of UBS Accountholders

Swiss Criticize U.S. Bank Deal

Mark Ellis — Mon, 17 Aug 2009 02:16:38 +0000

Last week, Switzerland’s UBS AG bank and the United States reached a deal that would allow the United States to finally be able to do something about taxpayers who hide their money in secret Swiss bank accounts. However, several Swiss financial experts have criticized the deal, stating that it will only cause an increase in pressure from other countries on Swiss secret banking.

According to Swiss banking expert Hans Geiger, the deal only benefits the IRS and the Swiss bank that created the deal, and that the rest of his country and its economy will only suffer from the deal. He worries that countries like Germany and Italy will increase the pressure on Switzerland to release information concerning foreign owners of secret bank accounts.

UBS AG was home to the accounts of 52,000 American clients whose names would eventually be released in one way or another to American law enforcement officials. Details of the deal and its ramifications will be made public as early as next week, according to a statement issued by the IRS.

Swiss National Bank (Image: Flickr)

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Swiss Criticize U.S. Bank Deal

Dodging Taxes Just Got Harder

Mark Ellis — Wed, 12 Aug 2009 22:21:37 +0000

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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Dodging Taxes Just Got Harder