Latest U.S.-Swiss Deal Makes Clear: No Hiding Cash In Big Swiss Banks

[OhioChick]

Source: Forbes

6/21/2012 @ 12:56PM

The U.S. Treasury said today that it has reached deals with both Switzerland and Japan that will allow the U.S.—with just a few extra steps—to get the comprehensive reporting of foreign bank accounts held by U.S. citizens required by the Foreign Account Tax Compliance Act (FATCA). The agreements are just frameworks, so more details must still be worked out before they take effect.

FATCA was passed by Congress in 2010 as a part of the U.S. crackdown on offshore tax cheating that is estimated to cost Uncle Sam $100 billion a year. The new law requires foreign banks either to report annually to the Internal Revenue Service on all accounts owned by U.S. citizens (and by foreign entities owned by U.S. citizens) or to withhold as tax and send to the IRS 30% of the proceeds from any U.S. source payments to those accounts. Foreign banks must enter into a reporting agreement with the IRS by June 30, 2013 or else begin withholding on U.S. source payments on Jan. 1, 2014.

In recent years , dozens of wealthy Americans, including billionaire California developer Igor Olenicoff, have pleaded guilty to hiding money in undisclosed accounts at UBS AG in Switzerland, HSBC in India and other offshore banks. In 2009, as part of a deferred prosecution agreement with the Department of Justice, UBS agreed to pay the U.S. $780 million in fines, penalties and restitution and turn over the names of thousands of U.S. account holders. The U.S. is still investigating other Swiss banks, including Credit Suisse and Julius Baer, and the Swiss are seeking a global resolution of all those cases. In its own press release today announcing the new FATCA agreement, the Swiss State Secretariat for InternationalFinancial Matters said it hopes an agreement with the U.S. “on the resolution of outstanding tax issues concerning the past” will be reached by year-end.



Read more: http://www.forbes.com/sites/janetnovack/2012/06/21/latest-u-s-swiss-deal-makes-clear-no-hiding-cash-in-big-swiss-banks/

[shraby]

1. That's all well and good, but what about the Cayman Islands? Once the Swiss are

nailed down on reporting, then the Caymans should be, then try to find where the super rich will go after those avenues are closed...and they will hide what they have without a doubt.

[freshwest]

4. The 2009 action did specify country. The Swiss were simply the most newsworthy.

There have been seizures of many offshore accounts since 2009, and those who are still trying to hide their money are either giving up their citizenship or voting GOP.

And you're right, they will keep trying to find ways to escape. Romney has his money stashed on every continent except Antarctica, not just the Cayman Islands, which is a British territory.

[dmosh42]

2. There's always loopholes for the Romneys!

[freshwest]

3. I remember when Rush and Beck went nuts over Obama doing this in 2009.

Obama's plan counted on the original sunset of the Bush tax cuts in December of 2010. The GOP put media into overdrive to produce malaise on the left and outrage on the right.

Their solution to destroy Obama's presidency was to fund all the CT venues with Koch money and create the Tea Party in the spring of 2010.

All the diversions on both sides of the aisle were to put in ideologues to extend the Bush tax cuts. We are living with the results of their media manipulation still. EOM.

[Nihil]

5. ... but no problem at all doing it in the little Swiss banks ... nudge, nudge, wink, wink ...

> Latest U.S.-Swiss Deal Makes Clear: No Hiding Cash In Big Swiss Banks

"As of 2008, there are 327 authorized banks and securities dealers in Switzerland,
ranging from the "Two Big Banks" down to small banks serving the needs of a
single community or a few special clients."
(http://en.wikipedia.org/wiki/Banking_in_Switzerland)

So, take away UBS & Credit Suisse and you still have plenty of hiding places
before anyone in the Treasury gets too serious about your "savings" ...

[Octafish]

6. Pity poor Phil Gramm

The Meyer Lansky of the War Party.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4055207

[KurtNYC]

7. What a windfall for the Caymans !