Monday, December 1, 2014

Confirmation that Barclays' Private Bank in Switzerland has dropped out of a U.S. Program

We had posted on September 9, 2014 10 Swiss Banks Withdraw From US DOJ's Program where we discussed that According to Swiss newspaper NZZ am Sonntag, quoting unnamed sources, 10 Swiss Banks that requested the US Department of Justice's non-prosecution program have now withdrawn from it because they have decided they did not systematically break US tax laws (Lets see if DOJ agrees with them?).

The agreement entails paying a large fine and disclosing client information to the US DOJ. On January 28, 2014 we posted "Offshore Swiss Bank Account? This May Be Your Last Chance To File A Voluntary Disclosure!" where we discussed that the United States Justice Department had received 106 Requests from Swiss Entities to participate in a settlement program aimed at ending a long-running probe of tax-dodging by Americans using Swiss bank accounts according to a senior US official. The 106 Swiss banks came forward at the end of last year to work with U.S. authorities in a program brokered by the Swiss government to help the banks make amends for aiding US Tax Evasion.

Liechtenstein-based VP Bank came forward to say it had concluded that it no longer needed to take part in the program.
Barclays Plc’s Swiss unit said it withdrew from the program after an internal review of client accounts.

Now Reuters has confirmed that Barclays' private bank in Switzerland has dropped out of a U.S. program aimed at cracking down on wealthy Americans evading taxes through hidden offshore accounts, the British bank's market head for Switzerland said on Thursday.

"We have recently exited the program," Barclays executive Francesco Grosoli said at an event in Zurich, adding that the bank had done so "three or four months ago" after evaluating its options and seeking advice. Grosoli did not elaborate.

The Remaining 96 Swiss Banks 
Need To Persuade Their Clients To Come Clean!

As we posted on August 7, 2014, "Swiss banks have sent US client data to the IRS"  where we discussed that June 30 was the deadline for turning over information on Americans considered in breach of U.S. tax rules. August 1, 2014 marks the end of the second wave of deliveries and includes documents that show which American clients were compliant. 

Having met the August 1, 2014 deadline, some smaller banks will take a break from assembling reams of documents. For larger companies such as Cie. LombardOdier SCA, Geneva’s oldest bank, and Rothschild Bank AG of Zurich, as well as for some regional lenders including Aargauische Kantonalbank, the work will continue throughout the summer as they try to reduce possible fines by persuading clients to come clean directly to U.S. authorities. 

There’s a HUGE amount 
of Information Flowing to the US ... from Swiss Banks ...,”
said Jay Rubinstein, a lawyer with Withers LLP in Geneva...  

It all helps the Justice Department and 
the IRS Build Their Cases.”

The US Can Use Swiss Data 
for US Enforcement Actions!  
The new agreement makes clear that: “Personal Data provided by the Swiss Banks… Will be Used and Disclosed only for purposes of Law Enforcement (which may include regulatory action) in the United States or as otherwise permitted by US law.”  

However as we posted on November 5, 2014, 73% of Swiss Banks Want Changes to Their the Terms of the Anti-Tax Evasion Agreement - Non-Prosecution Agreements! where we discussed that the banks' sent the U.S. a letter of protest saying that these terms of their Non prosecution agreements go beyond what they anticipated when signing up, and urges that they are withdrawn.
The requirement to cooperate with foreign governments 'turns a programme specifically focused on US tax issues into a global cooperation agreement without any safeguards or guarantees of appropriate consideration of the banks' cooperation', according to the 11-page letter, which is signed by 18 law firms representing the banks.
Maybe the Tide is Turning in Switzerland? 
Maybe Not?

Have Un-Reported Income From an Offshore Bank?

Value Your Freedom?

 Taxpayers who wish to take advantage of the OVDP 
Must Act Quickly!  

Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243) 

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