Switzerland and US close to deal over tax evasion
Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.
Tuesday 25 October 2011
The largest banks operating in Switzerland are hopeful of tying up a wide-ranging deal to end US charges that they helped thousands of Americans to evade taxes in their home country, but the deal could cost them billions of dollars in settlement costs.
A group of up to 11 banks that offer offshore accounts through Switzerland, including Credit Suisse and London-listed HSBC, are expected to hand over the names of thousands of US clients.
The Swiss government has been shepherding the talks, through which they hope to preserve some vestiges of the country's banking secrecy rules. It hopes to outline a final accord for the foreign affairs committee of its parliament's upper house on 10 November.
"We are aiming for an all-encompassing solution that will apply to all the banks," said the Finance Minister, Eveline Widmer-Schlumpf. "We don't want to be confronted with the same issues time and again."
US tax authorities have been applying increasing pressure on Swiss banks since agreeing a $780m (£490m) settlement in 2009 with UBS, which was accused of helping US citizens to hide their assets offshore. As part of that settlement, it handed over details of 4,700 client accounts. UBS is not among the 11 banks that are still under investigation in the US, who between them are expected to hand over between 5,000 and 10,000 more American client names.
Earlier this year, the Swiss agreed wide-ranging deals with Germany and Britain on untaxed authorities held in the country.
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