Selective Swiss banks are blocking their client’s full access to offshore accounts in connection with tax treaties being negotiate between Switzerland and the US, the UK and Germany.
Switzerland is conducting talks with Germany, the US and to resolve the issue of unpaid taxes for assets held in Swiss banks. In the US many people evade their taxes by putting their money in offshore accounts. When discovered these individuals often need to hire a tax attorney.
The discussions could lead to the banks withholding taxes on capital gains, earned investment income from offshore accounts and levying taxes for past non-disclosures.
The Swiss banks are withholding some funds because of increased regulatory environment. And they are negotiating deals to divide payments to the UK and Germany treasuries which would keep clients identities a secret and safe from prosecution of tax evasion.
The USB, a Swiss bank released names of client’s who they helped hide taxable income from the IRS. Several of the USB clients have been prosecutes for tax evasion on the US and must employee tax lawyers. People convicted of tax evasion on the US often face prison sentences.
The Swiss banking association has asked banks to discontinue their efforts to assist people from removing their money from the country until negotiations conclude.
The IRS has been aggressive in their pursuit of tax evaders and will continue to prosecute those individuals. The only person capable of protecting a person from the IRS is a tax attorney.
