Category Taxation in North America

UBS and US Reach Settlement

August 13, 2009 International Tax CooperationOffshore BankingTaxation in SwitzerlandTaxation in USA  No comments

The Swiss bank UBS has reached a settlement deal with the US Government regarding allegations of tax evasion.

An out-of-court settlement has been brokered between the US Government, on behalf of the US Internal Revenue Service, and the Swiss Bank UBS. Exact details of the agreement have not yet been revealed, and are not promised until the final agreements are signed by all involved parties. At the moment the settlement sits as an “initialed agreement”. According to Ken Rubestein, senior partner at law firm Rubinstein & Rubinstein in New York, “This means the deal is effectively done” and “Signing is just a technicality; they are doing the final read-through just to be sure.”

Speculation of the exact nature of the settlement has been rife, and will continue to be so until its annou...

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US and UBS Case Reaches Agreement

August 4, 2009 International Tax CooperationOffshore BankingTaxation in SwitzerlandTaxation in USA  No comments

An agreement has been reached in the negotiations between UBS and the US, tentatively resulting in the disclosure of 5,000 account holder names and no fines for UBS.

The recent legal wrangle between the Swiss bank UBS and the US Department of Justice (DoJ), in a case filed on behalf of the Inland Revenue Service (IRS), looks like it could come to a relatively placid end. It was announced that the two parties have come to an agreement “in principal”.

While the US originally sought the names of 52,000 American UBS account holders, it now seems willing to settle for the 5,000 largest accounts. The sought after names are all under suspicion of evasion of US taxes through their Swiss offshore accounts...

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UBS Case Leads To Offshore Info Volunteers

July 31, 2009 International Tax CooperationOffshore BankingTaxation in USA  No comments

The ongoing legal action between UBS and US Government has lead to some US offshore account holders volunteering their financial information to eschew possible harsher penalties.

According to Internal Revenue Service (IRS) spokesman, Terry Lemons, almost 400 applications were received by the IRS for the Leniency Program for offshore bank account disclosure in the week starting Monday 20th of July. This amount eclipses the voluntary disclosures for 2008, which numbered only 100 individuals.

The IRS is currently pursuing the identities of approximately 52,000 individuals who they believe to hold offshore bank accounts with UBS specifically for tax evasion purposes. The legal action is proceeding in the US court system, thereby circumventing the strict Swiss banking privacy laws.

Those indiv...

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Australian Makes Requested Secrecy Case Submission to US

July 30, 2009 Offshore BankingTax HavensTaxation in AustraliaTaxation in USA  No comments

The Australian Taxation Office (ATO) has made its submission to US Senate Committee on Homeland Security and Governmental Affairs regarding the use of entities incorporated in the United States for possible secrecy haven purposes.

In an effort to stem tax evasion, avoidance, money laundering and other non-compliance activities, the US Senate Committee on Homeland Security and Governmental Affairs requested that the ATO provide some case studies involving US entities and their possible use in non-compliance activities in Australia. The ATO has now sent their response, consisting of an introduction and eight cases and their analysis.

The ATO made comments in their response saying that secrecy havens still being a high compliance risk to Australia...

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US IT Industry Oppose New International Taxation Rules

July 28, 2009 Taxation in USA  No comments

In an open letter, addressed to leaders of the US Congress, the IT industry is voicing their concern regarding the Obama administration’s international tax reforms, specifically in regards to “deferral”.

Under current US International taxation rules there are provisions for the “deferral” of international earnings on worldwide American companies. As it stands with the current rules, the active foreign income earned by a US based company is not taxed until it has been paid to the parent company. Typically this happens in the form of dividends from the foreign operation. This system allows for the US parent company to defer their taxation on earning.

Opponents of this system maintain that this has no effect beyond “shipping” US jobs overseas and allowing US companies to effectively ...

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