UBS to divulge more than 4,000 account names

[sinkingfeeling]

http://www.msnbc.msn.com/id/32474087/ns/business-world_business/

GENEVA - Swiss banking giant UBS AG agreed Wednesday to turn over to the IRS the details of 4,450 accounts suspected of holding undeclared assets by American customers, piercing Switzerland's long-standing tradition of banking secrecy.

IRS Commissioner Doug Shulman said the accounts held $18 billion in assets at one time. Many have since been closed, he said.

The deal will give the Internal Revenue Service thousands of long-sought account names, Shulman said, and is expected to provide even more UBS clients who voluntarily disclose their financial details to the agency.

Swiss Justice Minister Eveline Widmer-Schlumpf told a news conference in the capital of Bern that the deal lifts the threat of criminal prosecution against UBS, which could have endangered the bank's very existence and dealt a severe blow to the Alpine nation's economy.

The IRS long has had a policy that certain tax evaders who come forward before they are contacted by the agency usually can avoid jail time as long as they agree to pay back taxes, interest and hefty penalties. Drug dealers and money launderers need not apply. But if the money was earned legally, tax evaders can usually avoid criminal prosecution.

In March, the IRS began a six-month amnesty program that sweetened the offer with reduced penalties for people with undeclared assets. Shulman said the response has been unprecedented, though he declined to say how many people have applied.

[SpiralHawk]

1. "Jeez, I hope they don't list the BFEE. Smirk." -xCommander AWOL (R)

"We republicons like to keep our oil and war profits occult, and, of course, everything else we do as well. Smirk."

-xCommander AWOL (R)

[lonestarnot]

2. Welp if bloggers can't remain anonymous, why should tieves?

[GodlessBiker]

3. I wonder if Bernie or Ruth Madoff are on that list.

[KansDem]

4. Okay, fine! Now what about the other 48,000 to 50,000 accounts?

What makes these 4,000 so "special?"

[redqueen]

5. Why are you pissed off about this?

[KansDem]

10. See post no. 9 (nt)

[napi21]

7. Maybe the other accounts are owned by residents of another country.

The US Gov't can't go after them.

[KansDem]

9. These are American accounts...

U.S. sues UBS over 52,000 secret Swiss bank accounts

IRS suit hikes number of accounts tax man wants info on; UBS agreed to provide details on 250

By Neil Roland
February 19, 2009 2:25 PM ET

The United States sued UBS AG today in an effort to get the Swiss bank to turn over the names of as many as 52,000 wealthy Americans who allegedly tried to evade taxes on $14.8 billion in secret accounts.

UBS failed to comply with a summons from the Internal Revenue Service issued last July to produce records related to the American accounts, the Department of Justice said in a petition to the Miami federal court. The Swiss government also has refused to cooperate, an IRS official said.

UBS, the largest bank in Switzerland, said today it intends “to vigorously contest” court enforcement of the so-called IRS “John Doe” summons.

The bank did turn over the names of 250 account holders today under the terms of a criminal settlement. It objected, however, to providing any more names.

--more--
Financial Week

This angers me because right now a member of my family is paying off back taxes with interest and penalties while American Oligarchs are given amnesty with no prison sentences and reduced penalties. :grr:

It's this "Leona Helmsley" mindset that infuriates me!

[metapunditedgy]

11. Amen! Hopefully some reporter can do the math, realize

that 4000 << 50,000, and give us more details.

Is there any other way to recover this information besides waiting and hoping?

[napi21]

6. Betcha they're partying at the IRS & Treasury! That $$ is

hidden there to evade taxes, and now the poor little guys are going to have to pay up! Even a low rate on $18 Billion is a whole lot of money!

[Wapsie B]

8. One slice out of one tax haven with many others out there.

Cayman Islands being another big one. Still this is a start.

[KansDem]

13. Yes, just one bank. And don't forget Lichtenstein...

The world's press is flooded with reports that stolen records from LGT Group, the Liechtenstein bank, have been purchased for as much as $7.4 million by the tax authorities of several nations, including the United States, Germany and the United Kingdom. The records reportedly contain data on 1,400 LGT foreign clients, including foundations with more than 4,500 beneficiaries. Despite outrage over the propriety of tax authorities' paying for stolen information, law enforcement is expected to use this information to pursue the holders of alleged secret accounts containing untaxed assets. In the United States, Sen. Carl Levin has called for an investigation into whether US citizens are hiding assets in Liechtenstein.

The investigation of US taxpayers with offshore accounts is nothing new. Recently, the IRS conducted an expansive investigation into US taxpayers' use of debit and credit cards issued by financial institutions located in bank secrecy jurisdictions.1 The US Congress is considering legislation to combat perceived abuses by US taxpayers who use offshore structures to avoid or evade US taxes.2 Civil investigations and criminal prosecutions for the improper use of offshore structures are increasing.

US tax authorities have a variety of means for obtaining information regarding US taxpayers' financial transactions with foreign financial institutions. In the LGT case, US authorities have reportedly obtained a DVD containing information stolen from LGT by a former employee of the bank. More traditional means for securing foreign financial information include subpoenas to the US branch of a foreign financial institution, exchange of information under treaties or tax information exchange agreements and the use of informal information exchange protocols between the United States and foreign jurisdictions. US courts may even order persons within their jurisdiction to authorize the IRS to secure the information from the foreign financial institution, despite local bank secrecy rules.

--more--
http://www.mondaq.com/article.asp?articleid=58082

[cbdo2007]

12. soooo.....where are the names?

We'll never see them. They'll all be given a chance to pay the taxes they owe and the public will never hear about it.