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UBS to disclose tax details
Jim Armitage12 Aug 2009
UBS will hand over details of thousands of tax dodgers with private Swiss bank accounts to the US tax authorities after a deal struck tonight between Switzerland and America.
The agreement sent yet more shockwaves through the world's secretive tax havens just one day after Britain's historic deal to prise open Liechtenstein's secretive banking practices.
It marks an end to months of wrangling between Washington and Bern over whether America has the right to force disclosure of tax cheats' identities.
Switzerland, acting on behalf of UBS, had argued that such an action would be forcing UBS bankers to break Swiss laws protecting account secrecy. The US rejected that argument and took the bank to court in Miami.
UBS has admitted to setting up sham offshore companies in tax havens to help wealthy Americans evade US taxes from 2000 to 2007. One of its bankers, Bradley Birkenfeld, is awaiting sentencing later this month after admitting aiding US tax cheats.
Full details of today's out-of-court agreement are still being thrashed out, so it is unclear how many bank details will be handed over. But analysts said that Washington would not have settled for anything but a large proportion of the 52,000 wealthy Americans whose details it is seeking.
Wealth management industry sources said the case “opened the floodgates” for deals with all Swiss banks with American clients.
