Tuesday, March 17, 2015

DoJ Provides a Concession to Swiss Banks


The U.S. Department of Justice (“DOJ“) and the Swiss Federal Department of Finance have entered into an agreement that essentially ends Swiss bank secrecy and the renown of Switzerland as a tax haven (the “PFSB“).

The PFSB is monumental because it:
1.      Applies not just to American taxpayers but also to foreigners and foreign entities who maintain Swiss bank accounts if they are U.S. tax obliged persons under FATCA;

2.      Requires the disclosure of essentially every penny transferred in and out of closed Swiss bank accounts over the last five years by persons and entities who are caught by the PFSB, wherever situated. As a result, U.S. law enforcement will be able to follow the flow of funds to pursue tax evasion by learning from where, and to where, funds were transferred; and

3.      Requires the disclosure of professionals affiliated with the bank accounts or who acted as intermediaries in respect of the accounts.

By virtue of its reference to the U.S. Foreign Account Tax Compliance Act, 124 Stat. 97-117 (“FATCA“), the PFSB applies not just to American natural and legal persons but also to foreigners and foreign legal persons in the same circumstances in which FATCA applies (“U.S. Tax Obliged Persons"). Due to its breadth, FATCA impacts virtually all non-U.S. entities, directly or indirectly, receiving most types of U.S. source income, including gross proceeds from the sale or disposition of U.S. property which can produce interest or dividends.
Lawyers representing 73 of the banks have sent a letter to the US DoJ complaining that the latest version of the amnesty terms, circulated on September 22, 2014, includes new demands that were not in the original agreement.

Participating banks were required to cooperate fully with any other domestic or foreign law enforcement agency in any investigation, and to 'share material with governments other than the US.

It also insists that banks must disclose information about their parent companies.
 
The banks' letter of protest says these terms go beyond what they anticipated when signing up, and urges that they are withdrawn. The requirement to cooperate with foreign governments 'turns a program 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.

Swiss banks in a U.S. Justice Department self-reporting program for undeclared American accounts have won a concession that indicates the process is moving forward after an earlier impasse, according to a document reviewed by The Wall Street Journal

Now a new, revised agreement does not include the previous language about granting the Justice Department the right to share data with foreign authorities, or language requiring cooperation with foreign law enforcement. In addition, the revised version sets a term of four years for the banks to fulfil obligations under the program, whereas the prior version left the term indefinite.

The new, revised model agreement has been sent to banks in the program in recent weeks, according to people familiar with the matter.

They may get a modicum of relief, but the landscape of global transparency and disclosure isn’t likely to materially change.  
Have Un-Reported Income From an Offshore Bank? 

Value Your Freedom? 

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) 
















The U.S. Department of Justice (“DOJ“) and the Swiss Federal Department of Finance have entered into an agreement that essentially ends Swiss bank secrecy and the renown of Switzerland as a tax haven (the “PFSB“).

The PFSB is monumental because it:
  1. 1.Applies not just to American taxpayers but also to foreigners and foreign entities who maintain Swiss bank accounts if they are U.S. tax obliged persons under FATCA;
  2.  
  3. 2.Requires the disclosure of essentially every penny transferred in and out of closed Swiss bank accounts over the last five years by persons and entities who are caught by the PFSB, wherever situated. As a result, U.S. law enforcement will be able to follow the flow of funds to pursue tax evasion by learning from where, and to where, funds were transferred; and
  4.  
  5. 3.Requires the disclosure of professionals affiliated with the bank accounts or who acted as intermediaries in respect of the accounts.
By virtue of its reference to the U.S. Foreign Account Tax Compliance Act, 124 Stat. 97-117 (“FATCA“), the PFSB applies not just to American natural and legal persons but also to foreigners and foreign legal persons in the same circumstances in which FATCA applies (“U.S. Tax Obliged Persons"). Due to its breadth, FATCA impacts virtually all non-U.S. entities, directly or indirectly, receiving most types of U.S. source income, including gross proceeds from the sale or disposition of U.S. property which can produce interest or dividends.
Lawyers representing 73 of the banks have sent a letter to the US DoJ complaining that the latest version of the amnesty terms, circulated on September 22, 2014, includes new demands that were not in the original agreement.
· Participating banks are now required to 'cooperate fully with any other domestic or foreign law enforcement agency in any investigation, and to 'share material with governments other than the US.
· It also insists that banks must disclose information about their parent companies.
The banks' letter of protest says these terms go beyond what they anticipated when signing up, and urges that they are withdrawn. The requirement to cooperate with foreign governments 'turns a program 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.


Swiss banks in a U.S. Justice Department self-reporting program for undeclared American accounts have won a concession that indicates the process is moving forward after an earlier impasse, according to a document reviewed by The Wall Street Journal.

Now a new, revised agreement does not include the previous language about granting the Justice Department the right to share data with foreign authorities, or language requiring cooperation with foreign law enforcement. In addition, the revised version sets a term of four years for the banks to fulfil obligations under the program, whereas the prior version left the term indefinite.

The new, revised model agreement has been sent to banks in the program in recent weeks, according to people familiar with the matter.

They may get a modicum of relief, but the landscape of global transparency and disclosure isn’t likely to materially change.  
Have Un-Reported Income From an Offshore Bank? 
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Value Your Freedom? 
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZ_N85KhAuhB8QSYvgCQ12YYw-tfpDojPbThJY0Ode4lq2z4qLvV-KtslIig_tu5b8p4TrOveg78P-iHmzLqeVdpsZ55RbUJPPA9ZGaZ3aWyj0gQPkTffahEyCcCjtascnHYT2qQdi-lb7/s1600/tax-fraud-handcuffs3-150x150.jpg 
 Taxpayers Who Wish to Take Advantage of
the Current OVDP Must Act Quickly!   
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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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