Switzerland May Pay US Authorities $10 Billion To Settle Tax Evasion Dispute
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Members of the top echelon of the Swiss government, known as the Federal Council, are reportedly considering a proposal from the U.S. to pay a multi-billion fine and disclose bank client names, in order to settle a long-running dispute over the handling of tax-evasion cases, The New York Times reported on Tuesday.
Members of the top echelon of the Swiss government, known as the Federal Council, are reportedly considering a proposal from the U.S. to pay a multi-billion fine and disclose bank client names, in order to settle a long-running dispute over the handling of tax-evasion cases, The New York Times reported on Tuesday.
The fine, which is expected to be around $7-10 billion, would be paid in part by the Swiss government, who would then seek reimbursement from the banks, NYT sources said.
Among the Swiss banks targeted include UBS, Credit Suisse and the Swiss operations of HSBC Holdings; while Zurich-based private bank Julius Baer revealed on Tuesday that they were also now under investigation from a U.S. tax evasion probe, which suspects U.S. citizens suspected of having undeclared funds at the bank.
Hans Kaufmann, a Swiss parliamentarian and member of the conservative Swiss People’s Party, told NYT that various levels of Parliament would be informed of the Federal Council’s decision whether to accept the U.S. deal in the next 10 days or so.
But Reuters reported that Swiss Finance Minister Eveline Widmer-Schlumpf would still have to find a way to make the deal appealing for lawmakers approval, given the nation’s tradition of bank secrecy, which has helped to build the country’s $2 trillion offshore financial industry.
In 2010, the Swiss government had to turn to lawmakers to force through the handover of more than 4,000 files on UBS’s American clients as part of a landmark $780 million settlement, after the move was contested in court.
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The head of Credit Suisse, Switzerland’s second largest bank, meanwhile told Swiss papers on Tuesday he hoped for a rapid solution to the stand-off, even if it was a painful one.
“A painful solution is better than no solution,” Urs Rohner said, as cited by AFP, insisting that the deal should cover all the banks.
[quote]”It is unrealistic to think that the banks can continue skirting the problem in the long term, and that it will just solve itself,” he added.[/quote]
