News
LGT Could Face Tax Evasion Penalty, But Collection Won’t Be Easy
By Brian Monroe
printA Lichtenstein bank accused by U.S. lawmakers of aiding tax evaders could face sanctions on the heels of a nearly $800 million penalty against UBS AG, according to banking consultants. U.S. senators accused LGT Lichtenstein and Switzerland-based UBS in a July hearing of assisting American citizens in evading taxes through offshore banking vehicles. On February 18, the U.S. Justice Department fined UBS for helping 17,000 U.S. citizens hide their money from the Internal Revenue Service offshore. The department is likely to seek a similar action against LGT, but prodding the bank to pay a settlement may ultimately be more difficult,...
TO READ THE FULL STORY
Subscribe
Learn More
Related News
Thirty-four nations disclosed a finalized model plan Monday to regularly share financial data for tax enforcement purposes as part of a broader crackdown on tax dodgers and offshore jurisdictions.
An influential Senate subcommittee will hear testimony on tax evasion through offshore banks, Switzerland agrees to follow automatic data exchange standards and more, in this week's news roundup.
The U.S. Justice Department seizes digital funds tied to an Internet black market, Republicans line up behind effort to fight FATCA and more, in this week's news roundup.
China prohibits the trading of bitcoins by financial institutions over money laundering concerns, the U.K. closes 100 suspicious Bank of Cyprus accounts, and more, in this week's news roundup.
Financial trade groups are asking the U.S. Treasury Department for more time to comply with intergovernmental agreements intended to shine a light on bank accounts held by American tax dodgers.
A Geneva court's ruling clearing the way for bankers to know whether their employers have identified them to American investigators threatens to complicate a negotiated U.S.-Swiss tax deal, say sources.
Swiss financial institutions will likely exploit gaps in a bilateral agreement between the United States and Switzerland to preserve bank secrecy for their clients, says the bestselling author of a book on money laundering.
An expected pitch Friday by Switzerland's executive branch to clear the way for banks to share data with the United States is likely to face stiff domestic challenges, say Swiss attorneys.
A plan to require member-states of the European Union to automatically exchange tax-related data in an effort to boost government revenues is likely to face political and logistical challenges.
An expected agreement between the United Kingdom and Switzerland to tax half of the income of Britons keeping undeclared assets in Swiss bank accounts is a significant step backward in the fight against bank secrecy, say tax reform advocates.
The head of the Senate's powerful Permanent Subcommittee on Investigations is pushing for the establishment of international agreements to penalize banks known to help tax evaders.
British investors suspected of tax evasion through investments in Liechtenstein must either disclose their assets or find banks outside of the European principality, according to a tax agreement announced Tuesday.
In the wake of an extensive proposal forwarded by the Obama administration to stem tax evasion, anti-money laundering compliance departments are looking again at what they can and must do to fight the crime.
Bank secrecy jurisdictions have lobbied behind the scenes to weaken a United Nations call for greater international cooperation on tax evasion expected to be issued this week, say tax policy analysts.
The Obama administration's plans to curb foreign institutions from aiding U.S. tax evaders is short on details, but could block U.S. citizens and residents' access to foreign banks and put a new compliance burden on U.S. institutions, say some tax professionals.
At least half a dozen Swiss banks are scaling back their dealings with wealthy U.S. clients following a nearly $800 million penalty against UBS AG, according to news reports and tax analysts.
OECD official Jeffrey Owens spoke with reporter Brian Monroe about why tax evasion has grown in importance, and how the recent fine against Swiss bank UBS has been a wakeup call for some banks.
International pressure on bank secrecy havens, including Switzerland and Lichtenstein, is prompting tax evaders to move their assets to Middle Eastern and Asian countries, say economic analysts.
Switzerland's largest bank will pay $780 million to the United States for helping 17,000 U.S. citizens evade paying taxes on offshore revenue, the U.S. Justice Department said Wednesday.
Swiss bank UBS AG will end its offshore banking services to residents of the United States, a company official told Capitol Hill on Thursday.