Weekend Economists Examine (E)sc(h)atology January 24-26, 2014

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68. Tax Amnesty Program Draws 106 Swiss Banks, U.S. Prosecutor Says

http://www.bloomberg.com/news/2014-01-25/tax-amnesty-program-draws-106-swiss-banks-u-s-prosecutor-says.html


The top U.S. tax prosecutor said that 106 Swiss banks are seeking U.S. amnesty for helping American clients evade taxes, according to three lawyers who heard her speak at a conference in Phoenix.

U.S. prosecutors gave more than 300 Swiss banks until Dec. 31 to seek non-prosecution agreements if they have “reason to believe” they violated tax laws. Banks must disclose how they helped Americans hide assets, hand over data on undeclared accounts and pay penalties. The program is the largest assault in a five-year U.S. crackdown on offshore tax evasion.

Kathryn Keneally, assistant attorney general in the Justice Department’s tax division, disclosed the number yesterday while cautioning that the final figure could change, lawyers said. She didn’t name any banks seeking entry into the program, which isn’t open to 14 already under criminal investigation, including Credit Suisse Group AG (CSGN), HSBC Holdings Plc (HSBA) and Basler Kantonalbank. (BSKP)

“She said 106 Swiss banks had signed letters of intent,” said Bryan Skarlatos, of Kostelanetz & Fink LLP in New York. “That was more than most people expected. It’s a result of the banks’ desire to have some certainty regarding their status with DOJ. I believe that DOJ is pleased with the response to the program so far.”