Swiss Banks Keen To Participate In US Tax Evasion Program
The US Department of Justice (DOJ) has received 106 requests from Swiss credit institutions willing to participate in its tax regularization program, which aims to put an end to attempts by US taxpayers to conceal their wealth in Switzerland.
The figure corresponds to one-third of all banks in the Confederation.
Clearly satisfied with the results, Kathryn Keneally, Assistant Attorney General for the US Tax Division, conceded that the department had not expected over one hundred requests for participation in the DOJ’s program for non-prosecution agreements or non-target letters. At the same time, Keneally pointed out that not all of the establishments that have come forward will be eligible to take part in the regularization process.
Signed by Switzerland and the US on August 29, 2013, the program provides a framework permitting eligible Swiss banks seeking non-prosecution agreements to resolve past “cross border criminal tax violations.” By cooperating with the US authorities and disclosing information on US account holders, Swiss banks are able to avoid prosecution. Banks will nevertheless be subject to a hefty fine of between 30 and 50 percent of the total sum of undeclared US assets.
Swiss credit institutions had until December 31, 2013, to request participation in the US program. The DOJ’s Tax Division pledged that it would not authorize formal criminal investigations of any additional Swiss banks prior to the December 31 deadline.
Banks that are already being investigated and facing prosecution, including Credit Suisse, are excluded from the regularization program as separate extra judicial deals are being negotiated.
Credit : Tax News
