As previously reported by International Adviser, the US has been pursuing Zurich-based banking giant UBS for these clients’ names ever since the bank admitted to helping some of its American customers to evade taxes through the use of offshore accounts.
The standoff ended yesterday with the result that the names may be transmitted to the Internal Revenue Service (IRS) “as early as this week”, according to one press report.
The Bloomberg report quoted lawyers as saying that “Americans who ignored an IRS offer last year to reduce penalties in exchange for voluntary disclosures are now flooding their offices with calls” as they race to avoid possible sanctions, “which could include prison sentences”.
Under Swiss law, banks must not divulge the names of their clients. However, they are also not permitted to assist or be aware of any criminal wrong-doing, including tax evasion.
