Comments on: UBS counter-attacks and takes US court to task http://genevalunch.com/blog/2009/02/23/ubs-counter-attacks-and-takes-us-court-to-task/ Community Newspaper Online Thu, 19 Apr 2012 06:39:46 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: GenevaLunch » Blog Archive » US, Russia to explore new ties in Geneva; Calmy-Rey to meet Clintonhttp://genevalunch.com/blog/2009/02/23/ubs-counter-attacks-and-takes-us-court-to-task/#comment-21656 GenevaLunch » Blog Archive » US, Russia to explore new ties in Geneva; Calmy-Rey to meet Clinton Sat, 28 Feb 2009 22:25:58 +0000 http://genevalunch.com/?p=12668#comment-21656 [...] among other matters, the legal situation of Switzerland’s largest bank, UBS, in the face of charges pressed by the IRS (Internal Revenue Service), the US tax authorities. Posted by :: Ellen [...] [...] among other matters, the legal situation of Switzerland’s largest bank, UBS, in the face of charges pressed by the IRS (Internal Revenue Service), the US tax authorities. Posted by :: Ellen [...]

]]> By: GenevaLunch » Blog Archive » UBS’s CEO resigns, bank hires ex-Credit Suisse bosshttp://genevalunch.com/blog/2009/02/23/ubs-counter-attacks-and-takes-us-court-to-task/#comment-21518 GenevaLunch » Blog Archive » UBS’s CEO resigns, bank hires ex-Credit Suisse boss Thu, 26 Feb 2009 08:23:50 +0000 http://genevalunch.com/?p=12668#comment-21518 [...] faces an uphill battle: bank shares have falled to historic lows this week while the bank fights a major court case in the US to protect client names as well as legal cases in Switzerland, where wealthy private clients have [...] [...] faces an uphill battle: bank shares have falled to historic lows this week while the bank fights a major court case in the US to protect client names as well as legal cases in Switzerland, where wealthy private clients have [...]

]]> By: Andyhttp://genevalunch.com/blog/2009/02/23/ubs-counter-attacks-and-takes-us-court-to-task/#comment-21410 Andy Tue, 24 Feb 2009 15:37:34 +0000 http://genevalunch.com/?p=12668#comment-21410 So, having engaged in tax fraud, notwithstanding having been caught out before and promised to be good, UBS now wants to cite Swiss law as a defence in the American courts. First of all it won't work. We've been there before and not only in the Lawrence affair (some Cayman bank) where the names of the American tax cheats were duly revealed. Swiss bankers whose bodies have been in custody of the US marshals have been there too. And the whole recent dismal history of "foreign asset protection trusts" tells us these arguments are non-starters. They put the banker, the trustee, the beneficiary -- whichever body they have -- in prison, for a decade even in a recent marital case, until the judge gets what s/he wants.Neither the banks nor the Swiss Government should have been surprised. The enactment of an automatic penalty of $10,000 (and a potential penalty up to $50,000) by the IRS for nonfiling of Form 5471 starting 1 Jan. 2009 ought to be enough warning that even "accidental Americans" in "situation irrégulière" however trivially, are being targeted. You gotta be on the scale of Marc Rich to get away with it (and even he's not free of civil liability). The Anstalten and the Stiftungen are next. So, having engaged in tax fraud, notwithstanding having been caught out before and promised to be good, UBS now wants to cite Swiss law as a defence in the American courts. First of all it won’t work. We’ve been there before and not only in the Lawrence affair (some Cayman bank) where the names of the American tax cheats were duly revealed. Swiss bankers whose bodies have been in custody of the US marshals have been there too. And the whole recent dismal history of “foreign asset protection trusts” tells us these arguments are non-starters. They put the banker, the trustee, the beneficiary — whichever body they have — in prison, for a decade even in a recent marital case, until the judge gets what s/he wants.

Neither the banks nor the Swiss Government should have been surprised. The enactment of an automatic penalty of $10,000 (and a potential penalty up to $50,000) by the IRS for nonfiling of Form 5471 starting 1 Jan. 2009 ought to be enough warning that even “accidental Americans” in “situation irrégulière” however trivially, are being targeted. You gotta be on the scale of Marc Rich to get away with it (and even he’s not free of civil liability). The Anstalten and the Stiftungen are next.

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