Skip to comments.UBS warns of dire consequences from U.S. tax battle
Posted on 02/20/2009 3:59:29 PM PST by NormsRevenge
MIAMI (Reuters) UBS AG (UBSN.VX) (UBS.N) warned Friday that it could go out of business if it complied with an order to reveal the names of thousands of suspected U.S. tax dodgers with secret offshore accounts at the Swiss bank.
In papers filed in federal court in Miami, attorneys for UBS said a U.S. government lawsuit filed Thursday could force it to violate Swiss criminal law by turning over information protected by Swiss financial privacy laws.
Such a violation would expose UBS employees to "substantial prison terms" as well as fines, penalties and other sanctions," the lawyers said.
They said compliance with demands made in the suit filed on behalf of the U.S. Internal Revenue Service would also require UBS, one of the world's largest banking institutions, "to violate Swiss law in a manner that will expose it to penalties, civil liability and the possible revocation of its banking license."
The suit came just a day after UBS agreed to pay $780 million and identify some clients in a deal to resolve U.S. criminal fraud charges that it helped wealthy Americans evade taxes.
Court papers show the IRS feared it might get details on as few as 12 accounts from the Swiss government versus the 52,000 undeclared accounts that U.S. authorities allege were held by UBS for U.S. customers, however.
The lawsuit, paving the way toward what could be a protracted legal fight aimed at lifting the Swiss bank secrecy veil, reaches far beyond the "deferred prosecution" deal settling criminal fraud charges.
UBS was given 11 days to respond to the suit and a court hearing in the case could be set for anytime after a status conference with the federal court judge scheduled to take place Monday.
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Take it to the Supreme Court. One of those nitwits said we should respect foreign law. This would be a good time to do just that.
Also, I wonder how many Big Dem contributors have Swiss accounts? Might be an inconvenient revelation if Rangle or Frank appear on the list.
“...UBS...could go out of business if....”
And the problem is?
Well, we know of one very big problem: all the dhimmicrat names that are on that list. Wanna bet?
Oh there’ll be Repulsicans there too, but D will be >>> R.
For Obama: the > stuff means “greater than”
52,000 names.. the mother lode.. and then some.
Good. Let’s see the names! To hell with the privacy laws.
The American people being played and I want to know just who’s playing us.
UBS should just withdraw from the US market and then ignore the IRS.
Interesting. I understand Barney Fwank’s swiss bank account number is 785MAN876HO8-1.
Too big to go to prison, I guess.
The IRS will drop this like a hot potato if there are enough prominent Democrats on the list.
If they can effectively protect tax dodging Democrats, I think I’ll move my money there too!
Globalization. It’s time to reveal who is globally evading taxes!
All they need to do is leak the names of a few prominent Democrats, and the whole matter will be swept under the rug.
Yeah, and I wonder how much of the “Obama Stimulus Spending Bill” will end up in private Swiss and Cayman Island bank accounts??? There is no accountability for the spending -— and you know what is going to happen.
UBS may have to close their US branches. People will have to fly to Switzerland, the old fashioned way.
At that point, IRS can demand all they want to.
You’ll note they will never demand access to Saudi banking information. Thats because thats where people whose names we know keep their money.
Or Chinese banks. Same same.
Exactly, UBS has created their own problems, they are their own solution via leaving the US market.
This is why one would want to use a Swiss bank that doesn’t have a U.S. branch.
Indeed, UBS got to large for their role in the world and therein is the problem, they cannot be both confidant and branch bank in the US.
The rest of us have to play by the rules, why not them and the 52,000 tax cheats that aren’t reporting worldwide income?
hmm 12 out of 52000. those 12 must be the only republicans they could find.
UBS is a million percent right. Have you ever heard a bank openly say that they could go out of business? It’s suicide. They may already have funds exiting the bank at breakneck pace, and BTW Swiss banks are already in a heap of trouble due to defaults throughout Europe and particularly Eastern Europe.
Stupid, stupid, stupid.
Don’t forget all of the Hollywood leftists. I’m sure several of those belong to them. :)
I, too, am wondering about Barney Frank and his boyfriend, and Franklin Raines and others who mined Fannie and Freddie for hundreds of millions while in charge. I would be willing to bet there are more than a few in Congress who have been concealing assets this way, and I predict that this balloon will soon lose its hot air and drift back slowly to earth.