The Swiss government said on May 29, 2013 that it would allow its banks to
disclose information on American clients with hidden accounts, a bold move
intended to help resolve a long-running dispute with the United States Treasury
and IRS over tax evasion.
Disclosure of actual client names and account data, which American authorities have been aggressively seeking, would take place under a taxation treaty between the two countries that the American side has not yet ratified. Banks under criminal scrutiny that agree to cooperate with the decision could still face deferred-prosecution or nonprosecution agreements, a lesser punishment than indictment.
American clients whose names are handed over by Swiss banks but who have not voluntarily disclosed hidden accounts to the Internal Revenue Service would probably face criminal tax-evasion charges. Dozens of Americans have been indicted or charged in recent years for failing to disclose their accounts on form TD 90-22.1, commonly know as the FBAR.
The decision also requires Swiss banks that cooperate with the Justice Department to protect their bankers and employees from, among other things, being fired for cooperating. American authorities have indicted more than two dozen Swiss bankers, lawyers and financial advisers in recent years.
Disclosure of actual client names and account data, which American authorities have been aggressively seeking, would take place under a taxation treaty between the two countries that the American side has not yet ratified. Banks under criminal scrutiny that agree to cooperate with the decision could still face deferred-prosecution or nonprosecution agreements, a lesser punishment than indictment.
American clients whose names are handed over by Swiss banks but who have not voluntarily disclosed hidden accounts to the Internal Revenue Service would probably face criminal tax-evasion charges. Dozens of Americans have been indicted or charged in recent years for failing to disclose their accounts on form TD 90-22.1, commonly know as the FBAR.
The decision also requires Swiss banks that cooperate with the Justice Department to protect their bankers and employees from, among other things, being fired for cooperating. American authorities have indicted more than two dozen Swiss bankers, lawyers and financial advisers in recent years.
As the old saying goes, you can run but you can not
hide. It is odd that people try to hide
their assets from taxes and from creditors when there are so many legitimate
plans and devices that can be used like ERISA qualified defined benefit pension
plans, Roth 401K’s and properly constructed and insured LLC’s.
Anton Ewing , JD
