UBS to pay 3-5 bln Sfr to close US tax probe
UBS to pay 3-5 bln Sfr to close US tax probe-paper | Deals | Regulatory News | Reuters .
Switzerland’s UBS is to pay 3 to 5 billion Swiss francs ($2.77 billion to $4.62 billion) in the next two weeks to settle a U.S. tax probe into the bank, Swiss newspaper Sonntag reported on Sunday.
The U.S. government is suing UBS to get the names of 52,000 Americans who allegedly hid nearly $15 billion in assets from the taxman.
Sonntag, which said the figure of 3 to 5 billion francs had been confirmed by three independent sources, reported a deal could be signed between July 1 and July 13.
Earlier this week, the U.S. Justice Department said it was still willing to consider a settlement, but denied it was planning to drop the case and said it would file a brief seeking an enforcement of the summons on June 30.
Which is good for revenue raising and putting a price on systemic risk for those engaging in this market but bad for letting individuals off the hook.
This is obviously a dirty deal in order to protect Swiss Bank Secrecy. I wonder if the Americans will accept such a deal because it would definitely be in favour of tax havens.
If you pay sufficient money you get off the hook. That is not the message people in America or in the world are looking for these days I hope.
It even might be “systemic corruption” and that in America if such a deal is going through! Maybe I am naive but it really looks strange, does it not?
Ruedi
You’re right, of course
But it collects the tax, the DTA is now there, and the disincentive is being created
Pragmatically this may be a way forward
But I hope the IRS continue to make examples of at least the 250 they have….
Then the risk of more corruption in future is reduced
I hope
Richard
Richard,
Let’s look at the figures USD 4,6 Billion / 52′000 Americans and assuming 50 % of those are tax evadors which I do think is a reasonable figure. This means as an average USD 176′000 additional tax income the US receives and looses its credibility. My view the Americans must be stupid if they agree to such a deal because we know from practice to get information out of Switzerland will take at least 2 years even there is a DBA in place. A request has to be approved on the local court level, on the stately court level and on the federal court level before information is realised because the tax evador will appeal the decision on all levels.
I have several examples dealing with tax fraud and not even tax evasion and that has happened in thoses cases. Being pracmatic is good and I think is right but this is a cheap and a dirty deal.
As an American I would not go for it, not even as a Government because it looks like a joke and on top of it alot of credibility is lost if agreed! Sorry, for being so direct but I do think this is the reality.
On the other hand I hope I am wrong but the penny just does not drop! May be there is someone who could enlighten me!
Ruedi