Swiss offshore banking just took another hit. UBS has been embattled for months now, dealing with the U.S. government’s Internal Revenue Service (IRS) with regard to allegations that the company aids tax evasion. In the latest move, though, UBS has agreed to give up some of the names of its U.S. clients. Stock Market Funding reports on this deveopment:
UBS (UBS) has agreed to pay $780 mln and identify certain U.S. clients in a deal to resolve criminal fraud charges that it assisted rich Americans to evade taxes. The settlement announced on Wednesday further cracks Switzerland’s trademark bank account secrecy and could expose some UBS customers to Internal Revenue Service scrutiny and law enforcement action.
Swiss offshore banking has been held as the standard in completely secret and anonymous banking for decades. Now, though, with the UBS deal, that could all come crashing down. And if Swiss banking cracks, is there any truly private offshore banking anywhere?
The latest crackdown on offshore banking and tax evasion should serve as a reminder that, even though there are some definite tax advantages to an offshore bank account or offshore company, it is important that you understand the laws and regulations that still apply in your home country. There is still reporting to do, and you still have to pay some taxes.
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