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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe IRS-Swiss Banker Arrests Everyone's Been Waiting For
Government authorities are going after three Swiss bankers suspected of stashing over a billion dollars out of reach of the U.S. Internal Revenue Service. The Huffington Post published details of the case on Tuesday afternoon, "Three Swiss bankers were charged Tuesday with hiding more than $1.2 billion in U.S. taxpayer accounts from the IRS, by Preet Bharar, the Manhattan U.S. Attorney." Bharar, of course, is the same U.S. Attorney that recused himself from investigating News Corp.'s phone hacking investigation due to his close relationship with a member of the company's board, but he's also one of the most ruthless prosecutors when it comes to major white collar crime cases. Judge Jed Rakoff, recently identified as Occupy Wall Street's hero in the Department of Justice, for refusing to allow Citigroup to settle a case related to the financial crisis without fully divulging the details of what it did. Of the three bankers charged -- following up with the names Michael Berlinka, Urs Frei and Roger Keller -- HuffPost's Marcus Baram noted, "All three Swiss bankers worked at Wegelin & Co., which has been in cross-hairs of US authorities
" and points to a Bloomberg report from last March of a Wegelin banker arrested by F.B.I. agents at the Miami airport in October 2010 and later convicted of money-laundering charges, to which he had confessed.
News of such a massive case of tax evasion that will be pursued by DOJ all-stars like Bharara and Rakoff weighs heavy on a developing issue of American corporations practically committing tax evasion by exploiting loopholes. Known as the Double Irish, many companies set up global headquarters in places like Dublin, allowing them to exploit a loophole in the U.S. tax code that saves companies tens of billions of dollars. Google, for one, is currently being audited by the IRS for possible tax avoidance, after it saved an estimated $60 billion for paying what amounts to a 2.4 percent tax rate. Until we know the full details of latest case against the Swiss bankers we won't know if the most recent case relates to the income shifting that allows U.S. corporations to stow away taxable revenue in foreign banks, but these charges at least show Americans that the IRS is cracking down on off-shore accounts.
http://www.theatlanticwire.com/business/2012/01/irs-swiss-banker-arrests-everyones-been-waiting/46926/
hobbit709
(41,694 posts)BlueToTheBone
(3,747 posts)xchrom
(108,903 posts)ProgressiveProfessor
(22,144 posts)FreakinDJ
(17,644 posts)The Magistrate
(95,243 posts)'Michael Berlinka, Urs Frei And Roger Keller allegedly conspired with some U.S. taxpayers and others to hide Swiss bank accounts and the income generated from them while working as client advisers for a Swiss bank, according to a press release from Bharar's office.'
ProgressiveProfessor
(22,144 posts)Conspiracy is the easiest charge to make. Sort of like Disorderly Conduct if the cop want to harrass you. Why Swiss citizens are subject to US laws is a much trickier issue
The Magistrate
(95,243 posts)They engage in conspiracy with U.S. citizens, and take actions to implement that conspiracy; their citizenship is immaterial, as is their location.
ProgressiveProfessor
(22,144 posts)To use the easy example, a few years ago, if a US citizen went to one of the special cafes in Holland, did the server or proprietor break US laws by selling them some weed?
The Magistrate
(95,243 posts)He would have violated U.S. law by engaging in conspiracy to import a controlled substance into the United States. The Dutch might well choose not to arrest him on complaint, or to allow extradition, but that is a separate question.
Octafish
(55,745 posts)Great place to start. Now let's get to Phil Gramm's UBS and the more modern offshore havens for the tax dodging connected blueblood set. Did I ever mention Phil's the Meyer Lansky of the War Party?
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4055207
justiceischeap
(14,040 posts)I'm currently paying some back taxes (heavily fined through interest) and I wonder how they don't go after millionaires and billionaires who'd they definitely get more money than from me.
FreakinDJ
(17,644 posts)Can't remember what did it but I ended up being "Re-assesed" owing an additional $2200
justiceischeap
(14,040 posts)FreakinDJ
(17,644 posts)and it was penalties
Even thou I didn't claim all my deductions on my W-2 and paid more then enough in payroll deduction taxes to cover the difference