Tags: EU | Switzerland | Credit | Suisse | Tax | Evasion

US Tax Office Demands Info on Credit Suisse Clients

Tuesday, 08 Nov 2011 07:21 AM

Credit Suisse said Tuesday that U.S. tax authorities have demanded details on some of the bank's American clients, indicating that Washington is prepared to use existing treaties to pursue suspected tax cheats in Switzerland.

Switzerland and the United States are currently locked in talks over how to deal with several Swiss banks — including Credit Suisse Group — suspected of helping rich Americans hide money from the Internal Revenue Service. Last month Credit Suisse said it has set aside 295 million Swiss francs ($329 million) to settle possible legal proceedings.

The bank said it has notified an unspecified number of American clients that their data will be automatically handed over to Swiss authorities for examination.

The clients will have the opportunity to lodge an appeal before Swiss authorities forward any information to the IRS, Credit Suisse said, noting that Washington's request was issued "pursuant to the 1996 double tax treaty between Switzerland and the U.S."

The U.S. move takes some of the pressure off Switzerland, which has so far resisted demands to use an emergency decree to circumvent Swiss banking secrecy law as it did in the case of UBS. The Credit Suisse rival was forced two years ago to hand over the names of thousands of American account holders and pay a $780 million fine in a landmark case that started a gradual erosion of Switzerland's storied tradition of banking secrecy.

Officials in Bern last week angrily denied reports that Switzerland was offering $10 billion to settle the latest tax case against the country's banks.

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Credit Suisse said Tuesday that U.S. tax authorities have demanded details on some of the bank's American clients, indicating that Washington is prepared to use existing treaties to pursue suspected tax cheats in Switzerland. Switzerland and the United States are currently...
EU,Switzerland,Credit,Suisse,Tax,Evasion
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2011-21-08
Tuesday, 08 Nov 2011 07:21 AM
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