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Monthly Archives: January 2012

Swiss Bank Clariden Leu to Turn in Its U.S. Clients

January 26, 2012

 Switzerland's oldest private bank Clariden Leu has informed some of its U.S. clients that it has been ordered to turn over their names, and offshore bank account information to the IRS.
Clariden Leu posted a notice on its website dated Nov. 29, 2011 to that effect.

This is bad news for U.S. offshore account owners who have not previously made a voluntary disclosure to the IRS. Such individuals run the risk of the IRS filing criminal tax fraud charges against them, or criminal charges related to willful FBAR violations. Alternatively, only civil tax fraud or other penalties may be involved, but the FBAR penalties alone could far exceed the balances in the offshore accounts.

The notice refers to a U.S. treaty request apparently covering U.S. beneficial owners of beneficial accounts at Credit Suisse AG, Neue Aargauer Bank AG, and Clariden Leu.

In November Credit Suisse announced that it is in the process of integrating Clariden Leu's operations into Credit Suisse. The treaty request appears to be limited to U.S. account holders who hold their accounts through "domiciliary companies."

The notice also points out that although the account holders have appeal rights to the SFTA (Swiss Federal Tax Authority) attempts to block the turnover of information to the IRS may require compliance with 18 USC Section 3506. That section provides that:

"...any national or resident of the United States who submits, or causes to be submitted, a pleading or other document to a court or other authority in a foreign country in opposition to an official request for evidence of an offense shall serve such pleading or other document on the Attorney General at the time such pleading or other document is submitted."

The notice correctly observes that anyone in this situation should consult with a qualified attorney concerning any obligations under Section 3506.

If you have undisclosed offshore financial accounts, and would like a FREE confidential consultation regarding your options please call Marini & Associates, P.A. at 888-8-TAXAID or go to our website www.TaxLaw.ms.

Read more at: Tax Times blog

Swiss deal with United States?

January 26, 2012

"We hope to conclude the negotiations in 2012," Eveline Widmer-Schlumpf journalists after talks with U.S. Treasury Secretary Timothy Geithner at the World Economic Forum.

Widmer-Schlumpf said Switzerland was already discussing possible fines its banking industry will have to secure a global civil settlement with U.S. authorities.

It is also trying to get the U.S. Department of Justice to drop criminal probes of 11 banks, including Credit Suisse and Julius Baer.

 
 

Read more at: Tax Times blog

White House Tax Plan Designed to Keep Companies in U.S.

January 26, 2012

A White House proposal that would require U.S. multinational corporations to pay a minimum tax on their overseas profits is designed to make the corporate system fairer and discourage companies from moving to lower-tax jurisdictions.

The new tax would be designed to prevent other countries from attracting American businesses through low tax rates and the savings would be invested in cutting taxes in the United States, according to a fact sheet released by the White House.

The plan also will include a revenue-neutral package of measures that officials say will support manufacturing while discouraging outsourcing and encouraging“insourcing.”

The provisions include:

1.     Ending the tax deduction for moving expenses for companies that move overseas 
2.     Support to cover moving expenses for companies that close production overseas and bring jobs back to the United States
3.     Reinstating the expired Section 48C Advanced Energy Manufacturing Tax Credit
4.     Closing a loophole that allows companies to shift profits overseas (raises $23 billion): Corporations right now can abuse the tax system by inappropriately shifting profits overseas from intangible property created in the United States.
5.     Making companies pay a minimum tax for profits and jobs overseas through eliminating tax incentives to ship jobs offshore by ensuring that all American companies pay a minimum tax on their overseas profits. (possibly a minimum tax on foreign Trade or Business Income?) and
6.     Cracking down on overseas tax avoidance and loopholes, includes signing into law the Foreign Account Tax Compliance Act (FATCA), which targets tax evasion by U.S. citizens holding investments in foreign accounts, as well as measures to crack down on abuse of foreign tax credits through games that allowed multinational companies to inappropriately reduce the amount of taxes they paid here at home.

For a text of the fact sheet released by the White House go to BNA: http://op.bna.com/dt.nsf/id/emcy-8qupfa.

Read more at: Tax Times blog

Ex-bank employee fined $25,000 for SAR disclosure

January 25, 2012

On December 15, 2011, the Financial Crimes Enforcement Network (“FinCEN”) assessed a $25,000 civil money penalty against a bank employee for unlawfully revealing the existence of a Suspicious Activity Report (“SAR”) to the subject of the SAR (“CMP”). FinCEN determined that the bank employee violated the Bank Secrecy Act (BSA) and its implementing regulations by willfully disclosing the existence of a SAR to a person involved in the reported transaction.

The CMP reinforces the strict obligation to maintain the confidentiality of SARs as well as any information that would reveal the existence of a SAR. Specifically, FinCEN stated that “all employees, agents, and individuals who are privy to the information contained in the SAR should be aware of-and held to- the obligation to maintain confidentiality with respect to such information. This obligation extends beyond the SAR itself, to any information that would reveal the SAR’s existence.” In addition, the CMP highlighted that the unauthorized disclosure of a SAR may also result in criminal penalties.

Read more at: Tax Times blog

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