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UBS Refuses to Hand Over Names of US Tax Cheats

Bank charges IRS is trying to trample on Swiss laws

By Rob Quinn,  Newser Staff

Posted May 1, 2009 3:18 AM CDT

(Newser) – Swiss bank UBS has rejected a demand from the IRS that it cough up the names of 52,000 suspected American tax evaders, the Times of London reports. The bank—which paid out $780 million to avoid prosecution for helping rich Americans dodge their taxes—said the lawsuit by the IRS demanding the information violates Swiss sovereignty and that granting the request would breach the country's secrecy laws.

"Having received $780 million from UBS for UBS’s violations of the laws of one country, the US government would now force UBS and its employees to break the laws of another," the bank stated in a filing in federal court. The Swiss government has offered the US a new tax treaty if it agrees to drop the lawsuit against the bank.

UBS has accused the IRS of trying to trample on Switzerland's sovereignty .
UBS has accused the IRS of trying to trample on Switzerland's sovereignty .   (AP Photo/Keystone, Steffen Schmidt)
UBS has admitted it assisted wealthy Americans seeking to evade taxes.
UBS has admitted it assisted wealthy Americans seeking to evade taxes.   (©Allie_Caulfield)
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The IRS now asks this court to force a Swiss financial institution and its employees, over the express objection of the Swiss government, to violate Swiss law.
- Statement from UBS

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COMMENTS
Showing 3 of 5 comments
oldgoat
May 1, 2009 9:00 AM CDT
Before giving UBS the money it should have been signed off that UBS gives them the names. No names no money. I doubt that he is really concerned about any high moral values, but more that some rather important names and with it problems for them would come out.
GreekChorus
May 1, 2009 8:58 AM CDT
Kudos to those at UBS for having the courage to stand up for the privacy of its customers against the US Government. It's well ovedue that the US Government starts getting "No" for an answer to its invasive demands. I have no such accounts, nor the resources to make such an account worthwhile; however I much prefer to see money in the hands of those that earned it rather than those with the hubris to demand a portion of it because they claim dominion.
gilgordan
May 1, 2009 4:23 AM CDT
Just another reason to close the global tax loophole, that deny not only the US of legal tax revenue but other nations also. Again the "let them eat cake" mentality of the wealthy and the sequester national interest of the Swiss should not deny the mantra of "greatest good for the greatest number"

Switzerland, US spar over bank secrecy
Bloomberg

 
IRS • Switzerland • UBS • tax evasion • Internal Revenue Service • Swiss bank • offshoring

 
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