Reply #49: Swiss bank UBS will be forced to name wealthy US clients [View All]

[Robbien]

GENEVA • Swiss bank UBS will be forced to reveal the names of rich American clients who may have used its services to avoid paying income taxes.

UBS declined comment when contacted. According to the report, US prosecutors will use a subpoena to make the bank reveal its client list, after an indictment in the Florida federal court on Tuesday of former UBS private banker Bradley Birkenfeld and Liechtenstein businessman Mario Staggl.

The move follows investigations by the US Justice Department into whether UBS, as well as Birkenfeld and Staggl, helped wealthy Americans to evade paying income tax on their investments, said the report.

Last week, the Swiss bank made a securities filing revealing the Justice Department’s probe into its activities.

“In particular, DOJ is examining whether certain US clients sought, with the assistance of UBS client advisors, to evade their US tax obligations by avoiding restrictions on their securities investments,” the Swiss bank’s securities filing said.

Banks often help wealthy clients to legally minimize their tax bills, but it is illegal in the United States actively to evade paying income tax on earnings.

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