May wanna get rid of that Swiss Bank Account

[Geronimo36]

Interesting...

http://www.washingtonpost.com/wp-dyn...081901395.html

Swiss Bank UBS to Divulge at Least 4,450 Account Names

A deal finalized Wednesday between the United States and Switzerland paves the way for a potentially historic disclosure of Swiss bank secrets: the names of thousands of Americans suspected of using secret accounts to hide money from the IRS.

Under the agreement, UBS -- Switzerland's largest bank -- is expected to turn over the names of Americans who controlled 4,450 accounts that are currently open or have been closed.

The secret accounts at one point held as much as $18 billion, the IRS said.

"We will be receiving an unprecedented amount of information," IRS Commissioner Doug Shulman told reporters Wednesday morning.

The settlement follows a long-running effort by the U.S. government to penetrate Swiss bank secrecy and catch tax evaders.

The U.S. government had been seeking a federal court order demanding that UBS identify the holders of 52,000 accounts. The Swiss government vowed to prevent such a disclosure, leading to weeks of negotiations.

Switzerland was fighting to preserve the reputation for privacy that has made its banking industry a global powerhouse and a pillar of the Swiss economy.

The deal includes concessions that might make it easier for Switzerland to argue that its tradition of secrecy survived the battle.

The United States agreed to narrow its request.

More importantly, the United States agreed to drop its federal lawsuit against UBS and pursue the information through a Swiss legal channel under a tax treaty between the two countries.

The U.S. government tried to use that channel last year but got nowhere. Switzerland has agreed to handle the request differently this time.

Switzerland has not explicitly promised to identify the holders of the 4,450 accounts, but the two sides said that is the expected result, suggesting that the new U.S. request is mainly a formality and the outcome is preordained.

Under Swiss law, the affected depositors would have the opportunity to contest the release of their names and account information. But that, too, could be a hollow exercise. Under an interpretation of U.S. law, they might be required to disclose such appeals to the Justice Department, rendering moot any attempt to remain anonymous.

In February, to avoid criminal prosecution, UBS agreed to pay the U.S. government $780 million and admitted that it schemed to defraud the United States by helping Americans hide money from the IRS. At that time, the Swiss provided the names of 200 to 300 American depositors, which shows how much farther Switzerland is moving on the issue.

Some details of the settlement were not disclosed. The criteria the U.S. government used to narrow its request remain under wraps. That leaves UBS depositors guessing as to their personal risk of exposure and keeps them under pressure to seek leniency by turning themselves in to the IRS.

It could also obscure any shift in Switzerland's bank secrecy standards.

[Chris]

Damn. Now where will I stash all of my billions?

I think I'll buy a 3rd world country and have them refer to me as Generalissimo Chris.

[MattBMiller]

I guess I should cash mine out

[fund razor]

Damn. Now where will I stash all of my billions?

I think I'll buy a 3rd world country and have them refer to me as Generalissimo Chris.

You seem like more of an Admiral.

[tommymonza]

UBS demanded my inlaws get all their money out of their bank a year ago when the U.S. jailed the the UBS guys. If you were an American they didn't want your money anymore or the hassle of the U.S. goverment.Most of the reason they were thinking of going back to Italy.
I don't think the U.S. goverment will find much as many of the accounts have been closed.I work for Swiss that are very deep into UBS.

[LaughingCat]

I like the idea. Should flush out a bunch more Bernie Madoff's.

I'm an American, I pay taxes, they should pay theirs. THAT'S PATRIOTIC.

[Geronimo36]

UBS demanded my inlaws get all their money out of their bank a year ago when the U.S. jailed the the UBS guys. If you were an American they didn't want your money anymore or the hassle of the U.S. goverment.Most of the reason they were thinking of going back to Italy.
I don't think the U.S. goverment will find much as many of the accounts have been closed.I work for Swiss that are very deep into UBS.

According to the report, they're getting names of people with open and CLOSED accounts..

I'm an American, I pay taxes, they should pay theirs. THAT'S PATRIOTIC.

I don't like paying taxes just as much as the next guy but if someone is hiding money they acquired here in the US overseas to evade taxes, they get what they deserve!

[tommymonza]

Problem is or was they were Italian citizens that have been Swiss residents for 25 years in anticapation of selling his software company which he did years ago before they recently became U.S. citizens.
The money is not dirty it was just tax protected from the Italians and now their new country the U.S. until this fidingo with the IRS and Switzerland began.

So now as U. S. citizens you think that they should have to bring all of their money into the U.S. and have to pay the goverment half of it for taxes.

The Italian goverment does not get involved in it with the Swiss. Their motto is is you managed to get it out of the country and into Switzerland you are home free.

And just a little info. Everybody who deals with Swiss banks knows they are nothing but a huge laundering scheme thats why you can borrow money from them for 1 1/2 percent .
Another little piece of info. You can become a Swiss resident through owning a home and applying for residency but you can never become a Swiss citizen even if you marry one. Only way is to be born Swiss.

[tommymonza]

Oh and from my sources they are just humoring the U. S. goverment and stalling so they can move funds around.

[Geronimo36]

Tommy, In my opinon, if your relatives didn't earn that money here in the US I don't think they should have to pay taxes on it and I don't really care what they do with it overseas. The tax benefits to the US can/will come when they spend their money here.

The issue I have is when people earn money in the US and hide it overseas to avoid paying taxes.

It's almost the same tactic business owners use in "cash" based business where they report a fraction of what they actually make. I recently saw a W-2 for a highly paid CEO....the W-2 was $15K if you can believe it!!! WTF

[clayinaustin]

This sounds like just one more reason to have a Consumption (Sales) Tax in this country and get rid of all the other taxes. Who cares where/how you earned the money. If you spend it here, then you get taxed here!

just my fiscal two-cents...

[tommymonza]

VAT tax would be the way to go. Problem is our greedy stupid goverment would want to leave all the other taxes in place.

[LaughingCat]

I don't like paying taxes just as much as the next guy but if someone is hiding money they acquired here in the US overseas to evade taxes, they get what they deserve!

Totally agree. We don't have to like paying taxes. But one cannot call themselves a patriotic American if they cheat on their taxes. We are contributing to the continued vibrance of the country we love.

Now, if the politicians abuse our tax money, we should go after them, not pay the taxes.

[LaughingCat]

This sounds like just one more reason to have a Consumption (Sales) Tax in this country and get rid of all the other taxes. Who cares where/how you earned the money. If you spend it here, then you get taxed here!

just my fiscal two-cents...

Thank ****ing God you said it. We are destined to go this route, but not without the politicians and lobbyists for CPAs and tax attorneys fighting tooth and nail. Only a ground-swell movement by citizens will we be freed of oppressive income taxation.

Government should derive its tax revenue from the consumer not the worker. We have far more people in the US who are consumers than they are income earners/workers. This way, if you are much wealthier, any money you dont spend. . . it's not taxed.

This also solves the taxation on illicit business (drugs, etc). Becasue when the drug dealer buys his Lamborghini, he pays tax on it. And it's a higher, embedded sales tax.

Everyone, PLEASE go get teh book called The Fair Tax by Neil Bortz.

[LaughingCat]

This will tax all visitng tourists, and they will pay their fair share. If states raise their sales taxes enough, they can reduce our property tax rates. Think about it, I'd rather Jaffar and his family visiting Disney pay more in tax to help fund the roads he used to get the Disney than have my property taxes do it.

This should be a no-brainer.

[Geronimo36]

This sounds like just one more reason to have a Consumption (Sales) Tax in this country and get rid of all the other taxes. Who cares where/how you earned the money. If you spend it here, then you get taxed here!

just my fiscal two-cents...

I'm not apposed to comsumption taxation...

One question, does it cover how it would work for immigrants (H-1B, F1, L1 etc etc) who are w-2 wage earners that send all their money back home instead of spending it here?

[clayinaustin]

I'm not apposed to comsumption taxation...

One question, does it cover how it would work for immigrants (H-1B, F1, L1 etc etc) who are w-2 wage earners that send all their money back home instead of spending it here?

They have to spend some of it here, right? They eat, so they buy food. They sleep inside, so they pay rent/mortgage. They drive a car/truck, so they buy gas. They buy clothes and other items.

If they send money overseas, I see that as no different than someone putting money aside in a savings account.

[Sea-Dated]

This sounds like just one more reason to have a Consumption (Sales) Tax in this country and get rid of all the other taxes. Who cares where/how you earned the money. If you spend it here, then you get taxed here!

just my fiscal two-cents...

Only problem is that it would basically put the IRS out of business and when was the last time you knew government to reduce the # of jobs they provide?

[Geronimo36]

They have to spend some of it here, right? They eat, so they buy food. They sleep inside, so they pay rent/mortgage. They drive a car/truck, so they buy gas. They buy clothes and other items.

If they send money overseas, I see that as no different than someone putting money aside in a savings account.

These guys are well paid, rent/mortgage, food, car/truck, gas is probably a small percentage of their yearly income. Some of them even share housing with their buddies to save on costs.. They work here for 3-6 years then go home.... If they make enough money they have 25-30% taken in taxes currently and they also pay social security although they'll never be able to collect it. If they do all the above, send 60% of their income back home and live on the rest, how much taxes can they actually pay? It's likely the amount of taxes they pay on consumption will be far less than they would if their income was taxed.

I do see your point but there are a lot of things that would need to be looked at and I don't think it's simple.

[Tony]

You seem like more of an Admiral.

Nah, you gotta have boats that run before you can claim admiral status.