So just what is the advantage of Swiss Bank Accounts?

[SoutherDem]

I know some feel Mittens' tax returns will show something illegal, I don't think so. I am sure the IRS has reviewed them by now with a fine tooth comb. Plus, if you are going to do something illegal you don't report it on a government form, but as I was taught in college ethics, "Just because it is right doesn't mean it is legal and just because it is legal doesn't mean it is right." I think Mittens has followed the law and reported and paid every penny he was required to do. But, that doesn't mean he has done what was right.

Now I don't know much about Swiss Bank Accounts beyond what I have seen in the movies. It is a repeated theme that if you are "cooking the books", or want blackmail or ransom money you have it put in Swiss Bank Accounts. This puts it beyond the reach of the law. But that is the movies.

When someone asked in a town hall meeting about the offshore businesses and accounts he said he didn't save one dollar with them.

So just why have them then? Isn't it easier to use U.S. banks? Isn't it better to put the money in the U.S. economy? There has to be a reason he chose to use these banks as opposed to the U.S. banks. What is it?

I know the specifics would be just speculation, so I don't mean Mittens' advantage, but anyones advantage. Do I need to put my money in a Swiss Bank Account if they are so great?

[Wondering Soul]

1. lol

It is an interesting situation, though. Maybe a better return from those banks?

[TheWraith]

2. Well, yes, it does put it beyond the reach of the law.

Swiss banks up until very recently basically had a rule in place mandating that they wouldn't cooperate with other countries whose citizens were using Swiss banks for tax evasion purposes. Even now, it's questionable whether they have any intention of actually changing their ways despite a mandate from the OECD. There's also "numbered accounts," which are essentially anonymous--nobody except the bank management knows who they belong to.

[Wondering Soul]

4. Yea. In that regard...

it seems that if you at least disclose that you have money in a swiss bank account, then the IRS cant do anything about it.

Think that it falls under the grounds of tax avoidance, rather than it being tax evasion (or something like that).

[dipsydoodle]

5. Other than the fact

your IRS might want to know the origin of the funds in the first place.

[Wondering Soul]

6. True..

our tax code is really complicated, though.

[elehhhhna]

7. caymans, etc. have tight secrecy laws and won't disclose, so...

you report it yourself or not at all. The income (source), the growth, and the outgo (bribes, slush, etc.)

You can spend the $ using local-bank issued credit cards.

Pretty simple, really.

[Wondering Soul]

10. Damn. That's convenient.

[dipsydoodle]

3. Maybe you get cheese in lieu of interest

[TreasonousBastard]

8. Probably safety more than anything else. Swiss banks are among...

the safest in the world and if you let your bank fail, you go to jail. (At least that used to be the law there.) Really, if you've got a lot of money, you have to put it somewhere, so why not Switzerland... Besides, he might have money coming in from offshore activities that's legitimately not taxable here, so Switzerland would be the place to put it to keep it offshore.

I don't think anyone's hiding money there any more-- there are other, far less reputable, places to hide ill-gotten gains.

[Igel]

9. A couple.

Easier to hold foreign currency for either speculation or as a hedge against devaluation of the dollar. Probably the primary reason. Every means I have to hold foreign currency involves a hedge fund that's probably investing not in cash but in futures. (Even then, the European banks might not hold demand deposits for Romney but something else entirely--stocks, bonds, precious metals.)

Easier to trade on foreign stock exchanges. Want to dump money into the London market at 10 a.m. London time? You'd need to find a bank that's open at 4 or 5 a.m. on the East Coast. Also European banks are more "wired" than US banks, so international transfers are just faster.

Possible tax benefits. You need to pay estimated taxes on income. You can shelter income overseas if you suspect that you'll be spending it to cover a loss or to invest. It never shows up as anything truly auditable. You still have to pay taxes on any income, however, and any penalty on non-payment of estimated taxes.

[benld74]

11. FREE swiss cheese AND swiss chocolate the 2nd and 3rd Wednesdays of EVERY month!!!!

[onehandle]

12. You get Nazi gold instead of a toaster for opening an account. nt

[CTyankee]

13. god, that's funny! Good one, onehandle!

[DFW]

14. These days? None, any more

The Swiss banks have become so sensitive and paranoid that they are tell American citizens right and left to close their private accounts and their safety deposit boxes. If Romney still has big sums stashed there, either he has paid off someone in a Swiss Bank, or he has his dough stashed under the name of a non-US citizen.