Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a699919
New tax deal puts Swiss banks in the firing line
by Sarah Miloudi on Aug 30, 2013 at 07:49
Under a new programme struck between Switzerland and the US, Swiss lenders will share the details of their cross-border transactions but could face heavy fines.
Known as Accord, the deal has been described as a means of 'bringing tax dollars back to the Treasury' from across the globe, with Swiss lenders being encouraged to participate.
The Department for Justice has pursued a number of banks it believes to have had a role in helping high net worth individuals evade tax, and in 2009 UBS was handed a $780 million fine.
However its new programme is aimed at banks not under investigation for facilitating similar transactions, though it could pave the way for a quick resolution to ongoing probes into the practices of 14 other lenders.
Speaking to the Financial Times, Eric Holder, US attorney-general, said: 'The programme will significantly enhance the Justice Department's ongoing efforts to aggressively pursue those who attempt to evade the law by hiding their assets outside the United States.'
Over the past year, tax has emerged as a key reputational risk on both sides of the Atlantic. Both the US and the UK have drafted their own Fatca proposals, legislation also aimed at sharing information across borders, and corporates are increasingly being held to account over unpaid tax bills.
News sponsored by:
Today's top headlines
More about this:
On the road
by Danielle Levy on Dec 04, 2013 at 11:37