Thursday, February 19, 2009
Swiss bank to give up names
In this case, UBS is giving up the names of US customers that the bank had lured into offshore activities with the explicit aim of avoiding taxes.
UBS, the largest bank in Switzerland, agreed on Wednesday to divulge the names of well-heeled Americans whom the authorities suspect of using offshore accounts at the bank to evade taxes. The bank admitted conspiring to defraud the Internal Revenue Service and agreed to pay $780 million to settle a sweeping federal investigation into its activities.The Swiss are a simple, direct people. They sold out their customers to save a quarter of a $Billion.
Of the $780 million that UBS will pay, $380 million represents disgorgement of profits from its cross-border business. The remainder represents United States taxes that UBS failed to withhold on the accounts. The figures include interest, penalties and restitution for unpaid taxes.
The bank will not have to pay additional fines and penalties, which could have brought the deal to more than $1 billion. People briefed on the issue said the banking crisis and the recession were factors in this decision by prosecutors.
Subscribe to Posts [Atom]
Post a Comment