Credit Suisse acts on U.S. offshore clients: report

[Joanne98]

Source: Reuters


ZURICH (Reuters) - Swiss bank Credit Suisse is taking steps to change its relationship with U.S. clients in view of new, stricter rules on the taxation of U.S. residents' assets abroad, Swiss paper Sonntag said on Sunday.

Mindful of the problems that rival UBS is facing in the United States, Credit Suisse is writing to its U.S. clients holding Swiss accounts asking them to sign a form -- the so-called W9 form -- that would reveal them to U.S. tax authorities, the newspaper said.

UBS is at the center of an high-profile U.S. investigation that alleges that the Swiss bank has helped rich Americans to hide money away from the taxman in Swiss accounts. UBS said last year it would stop offering offshore services to U.S. citizens.

Credit Suisse, Switzerland's second-largest bank behind UBS, wants to avoid at all costs to run into similar problems and is taking steps to increase transparency already now.

Up until now, there is no disclosure requirement for U.S. clients of foreign banks that do not hold U.S. securities under the so-called Qualified Intermediary (QI) agreement.



Read more: http://www.reuters.com/article/ousiv/idUSTRE51E0JR20090215

[annabanana]

1. Very Good! . . .. next step:

Invade the Caymans!

[Joanne98]

3. I second that.

[FailureToCommunicate]

7. The invasion will only find nondescript office buildings with a postal box for

XYZ Corporation. There's no "there" there, as you know...

[annabanana]

8. What? No computers? . . .n/t

[mikekohr]

11. Don't Forget Bermuda and the tax cheats there, like United Parcel Service

United Parcel Service has shifted billions of US income to an off shore shell corporation named Overseas Partners Limited. Under the Clinton administration the IRS had won the largest back taxes judgement in such a case in US history (8 billion if my memory serves me correct). Shortly after George W. Bush took office UPS had the judgement overturned on appeal. The case was never pursued to my knowledge during the Bush administration.

UPS was a corporate sponser of Newt Gingrich's "Contract on America," and it's political action committee UPSPAC is among the largest in the nation. Over 80 % of its donations go to Republican candidates.

mike kohr

[natrat]

13. so howsabout treasury tells us where all the tarp money went so

someone can investigate,recover and prosecute before that shithead geitner gives away tarp 2---fucking crime family, to the caymans then on to switzerland, whatever fuck switzerland

[BumRushDaShow]

2. Sadly, I expect

they will find or already have found, some loophole, and/or will shift their wealth to places outside of the known havens.

[Joanne98]

4. We need more whistleblowers.

[FailureToCommunicate]

6. We also need to overhaul the tax codes so US corporations AND the rich can't

keep hiding so much of their taxable income...

I won't hold my breath

[JHB]

16. not just hiding, but other dodges as well...

Transfer pricing, foreign royalty deductions, etc.

A whole slew of legalized dodges that multinationals can take advantage of but ordinary people (and even most businesses) come nowhare close to qualifying for.

[Demeter]

5. I Don't Think The Rules Are New--Just the Enforcement of Them!

[TWiley]

9. Maybe they should be forced to renounce their citizenship to not pay taxes.

oops, now they are illegal and must be deported!

[bluesmail]

10. This may have to do with the closed circuit testimony

of a whistleblower from Lichenstein. Bad news travels fast in the financial universe. Either way it is great news.

[DCKit]

18. And he walked away with the data, so they couldn't just close their accounts....

and shift the money. :nopity:

[Baby Snooks]

12. Don't you love all the indictments for tax evasion?

"UBS said last year it would stop offering offshore services to U.S. citizens."

They said that right after they said they would not turn over the list of depositors. But would confirm if the US government provided a list. But would not turn over the cash of course. Of course it would depend on whether the depositors used their names on anything. Most don't.

Numbered accounts, you see, are just that. And most have corporations in exotic places like the Caymans listed on the bank records which of course the banks don't even turn over to their own government.

Switzerland will always be a tax haven for the wealthy. And the Swiss want to keep it that way. The US government is about to discover what the British government discovered a long time ago. The wealthy don't like taxes. So they go to Switzerland and buy a home or two and evade taxes. Don't like it? They can always move permanently to Switzerland. And some do. Like Mark Rich. And like Richard Burton.

[The Wizard]

14. There's always

Lictenstein and Dubai. Follow Dick Cheney.

[jonmiller74]

15. Although this news may seem good on the surface,

the bigger question it raises is about privacy. What should a government be able to discover about a citizens financial life. Do we as citizen have a right to keep our finances free from prying government eyes? Where does it end? Should we have to disclose the amount of cash we keep on hand. Before you say no, think about how the war on drugs already cast suspicion on anyone discovered by the police to have a large stash of money. One must often prove the legality of your own money before it is returned to you.

Another point to consider is Tax fairness. If, for example, the money deposited in a Swiss account was obtained legally and consists of post taxed earning, do you still believe the IRS should tax the interest it's earned from a foreign bank while outside of the country. The US government believe that is can tax your earning where ever you earned it. I disagree with that ascertain, money you earn, should be taxed in the country it is earned in. Those Swiss account holder should have to pay taxes but those taxes should be paid to Switzerland.

Another issue is one of security, having money some place other than the USA can provide a safety net in terms of a fiscal or political crises occurring in this country.

[Baby Snooks]

17. But sometimes it's not taxed earning...

"If, for example, the money deposited in a Swiss account was obtained legally and consists of post taxed earning, do you still believe the IRS should tax the interest it's earned from a foreign bank while outside of the country."

But sometimes it's not taxed and it used to create offshore corporations which in turn produce income that is diverted to a Swiss account. Suddenly the checks that went to Joe Smith now go to Joe Smith, Inc. which is an offshore corporation. And suddenly Joe Smith doesn't owe any income tax. Which apparently was the problem with UBS. They were actualy helping American citizens set up these offshore corporations to create tax-free income-producing assets. It's quite complex which is why the IRS in particular has had problems along with the Justice Department.

Much of the complexity is the result of members of Congress like Phil Gramm who wrote tax law which creates legal illegality. Which is why so many of the tax evaders involved with UBS probably won't be prosecuted. They were evading taxes. But doing so legally. And they have done so since the point Bill Clinton signed it all into law. Our tax law is so complex at this point the law is really what you can convince a judge it is. If anyone bothers to indict you.

Or dares to. And don't kid yourself. There are quite a few wealthy Democrats who love it. And want to keep things just the way they are.

[Laelth]

19. Excellent! k&r n/t

The United States is a LIBERAL Country.

:dem:

-Laelth