US: UBS Must Release Names Of Suspected Tax Cheats

[Purveyor]

Source: Associated Press

(06-30) 13:17 PDT MIAMI, (AP) --

Swiss bank UBS AG "systematically and deliberately" violated U.S. law by dispatching private bankers to recruit wealthy Americans interested in evading taxes and must be forced to reveal the identities of 52,000 of those clients, the Justice Department said in a court filing Tuesday.

The filing, which comes amid several published reports that the case may be near settlement, urges U.S. District Judge Alan S. Gold to hold UBS accountable for conducting years of illegal business on U.S. soil — business that earned the bank more than $100 million in fees but cost the U.S. hundreds of millions of dollars in unpaid taxes.

"It is time for UBS to face the consequences that it has brought upon itself," said Justice Department tax attorney Stuart Gibson in the 55-page filing. "The United States has proven its case for enforcement."

Gold has set a hearing on whether to enforce what are known as "John Doe summonses" used by the Internal Revenue Service to seek information about U.S. taxpayers. U.S. and Swiss newspapers have reported a settlement is likely before that hearing, but Justice Department spokesman Charles Miller declined comment.

UBS spokeswoman Karina Byrne said the bank is "open to an appropriate solution" short of going to court but said no settlement has been completed. In a statement, she repeated UBS's contention that disclosing the U.S. taxpayer names would violate Swiss law and that the dispute should be resolved by the two governments rather than the courts.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/06/30/national/a120209D09.DTL

[KansDem]

1. IT'S ABOUT DAMN TIME!!!

Seize their fucking assets under "seizure and forfeiture" laws (that were set up, coincidentally, to combat piracy). No more busting cannabis smokers and taking away their property!

Maybe now everyone can pay their fare share, and we can enact a few long-overdue social programs...

[MattSh]

9. If you want social programs, go after

the Defense budget. Just the waste in DoD if more than they're likely to get from this source...

[KansDem]

11. You'll get no argument out of me...

Let's start by ending the goddamn occupation of Iraq. That alone would save us $720 million a day

[El Supremo]

2. I am so glad I dumped UBS.

They used to be great when they were Paine Webber.

[Blue_Tires]

3. yes, names out in the open...should be part of the public record

like when anyone else is charged with anything??

[Triana]

4. YES! n/t

[SpartanDem]

5. K&R

[pleah]

6. K&R

[provis99]

7. nothing will come of this

As the spokeswoman says, revealing names would be a violation of Swiss laws, and it is Swiss laws which matter in Switzerland, not some silly American opinions. Why would the Swiss cut their own throats just to help out American investigators too incompetent to catch tax cheats on their own?

[mbperrin]

8. Why would the Swiss cut their own throats by provoking actions which

could result in the US declaring their banks off-limits to US citizens?

That's just a start. How about colonic audits of American subsidiaries and associates of Swiss banks operating here with an eye toward seizure of assets?

How about some nice RICO action on those same folks who operate here on US soil?

How about just cutting Swiss banks out of investing in any US based instruments of any kind?

Just hand over the guilty names; so much simpler. Don't need to be as competent if you swing a big enough club.

[JPZenger]

13. European Union Rules and Leaks

Much of the Swiss illegal banking activity has already leaked out including through bribes paid by the German Secret Service. Also, the European Union has strict rules that they are using to pressure the Swiss. The Swiss banking system has already taken a financial hit over this mess. I wonder whether the big illegal accounts have already moved to other countries.

[MattSh]

10. Any half-assed lawyer would have told them

that if you want the protection of Swiss laws, look for a bank that has operations only in Switzerland.

Once they merge with bank in other countries, you subject yourself to the possibility of running afoul of laws in other jurisdictions. This is especially true with UBS, since part of the agreement allowing them to merge with Paine Webber said as much.

[JPZenger]

12. Bloomberg Ads: Come Clean With Your Foreign Accounts

Bloomberg radio is aimed towards investors. They have ads on the air from a firm offering help to people with overseas bank accounts to help them come clean with the IRS before the IRS prosecutes them.

(Amercans are allowed to have overseas accounts, as long as they are reported.)