Aug 5, 2008

Lichtenstein first....Switzerland next.....

On July 1st, 2008, a Federal Judge in Miami, Florida, approved an IRS summons for banking information to request information from Zurich, Switzerland-based UBS (a bank) about U.S. taxpayers who may be using Swiss bank accounts to evade federal income taxes.

The Lichtenstein incident was an accident--this one is no accident. The IRS is intentionally going after violations of disclosing foreign bank accounts.

The basis for this summons is a statement submitted to the court by former UBS banker Bradley Birkenfeld who has stated that UBS employees assisted wealthy U.S. clients in concealing their ownership of assets held offshore by creating sham entities and then filing IRS forms falsely claiming that the entities were the owners of the accounts. According to Birkenfeld’s court statement, UBS had approximately $20 billion of assets under management in “undeclared” accounts for U.S. taxpayers.

Bank secrecy in the 21st Century will soon be history. The annual disclosure requirement and the ramifications for non-compliance has all but made any lack of disclosure illegal.

Stay to the blog for future updates on this story..

2 responses:

Anonymous,  August 6, 2008 at 9:30 PM  

I'm sure even more affluent people will be brought forward n similar cases such as the incident with Wesley Snipes

Anonymous,  September 16, 2008 at 11:46 PM  

Jim, when are you going to write again? I miss reading your blogs

~Di

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