Justice Agency Slams UBS's Defense in Tax Case
By BRENT KENDALL
WASHINGTON -- The Justice Department attacked legal arguments made by Swiss banking giant UBS AG, which is trying to fend off the U.S. government's attempt to obtain the iden ies of tens of thousands of the bank's U.S. customers with secret Swiss accounts.
UBS reached a deal with federal authorities in February to avoid criminal prosecution for helping U.S. clients hide their accounts from the Internal Revenue Service. As part of that settlement, UBS agreed to pay $780 million in penalties and res ution and promised to disclose the iden ies of about 250 U.S. customers.
A day later, the Justice Department asked a federal judge in Miami to enforce an IRS summons seeking the iden ies of as many as 52,000 U.S. customers who allegedly hid their UBS accounts.
Government lawyers said in a court brief filed on Tuesday that UBS had a weak case for clinging to Swiss banking secrecy, because the bank knowingly and intentionally helped tens of thousands of wealthy Americans evade hundreds of millions of dollars in taxes.
"Any hardship that UBS might face from refusing to comply with a court order here is a hardship that it brought upon itself," the Justice Department said in a 55-page court filing. "It is time for UBS to face the rest of the consequences that it has brought upon itself."
UBS has said it can't provide information to U.S. tax collectors because the move would violate Swiss privacy laws that prohibit the disclosure to third parties information about Swiss bank accounts.
The bank also has argued that the high-stakes dispute should be resolved diplomatically between the Swiss and U.S. governments instead of in U.S. courts.
"Our position remains that the enforcement of the summons would require UBS to violate Swiss law and is inconsistent with treaty frameworks," UBS spokeswoman Karina Byrne said on Tuesday.
Ms. Byrne said the bank has sought to comply with the summons and has given the IRS "as much information as it can."
Some observers have suggested in recent days that UBS and the Justice Department might be nearing a settlement, but the government's strongly worded court filing on Tuesday gave no hint of that.
Ms. Byrne said reports of a possible settlement in the case "are speculative and possible settlement amounts that have recently been reported have no basis."
The Justice Department dismissed the bank's statement that it had made a good-faith effort to comply with the IRS summons. "The notion that UBS has always acted in 'good faith' to comply with U.S. law ... bears all the hallmarks of an 11th-hour confession, made in the hopes the sinner will be absolved from the full consequences of his wrongdoing," the department said.
A court hearing on the dispute is scheduled for July 13.
I dont know what to think about this...
One one hand, you have people hiding their money from the government. Not exactly something I condemn.
On the other, the names are probably every rich WASP from here to DC and I would like nothing more than to see them ed over.
On principal, I'll go with option A.
The timing may be inopportune for conviction, but opportune for voluntary settlement. A few baddies will receive exemplary official attention before they go to jail and pay large fines. Most will settle, I guess.
An estimate I saw is that US citizens have $1.5T stashed/hidden in overseas accounts.
If the IRS really gets these criminals, it will make the Madoff ripoff looks like chump change.
I was thinking they might find more of Madoff's money!
Last edited by Wild Cobra; 07-08-2009 at 10:17 AM.
The estates must be preserved intact for the government to get the most of them...
...though this would not preclude the occasional forfeiture, prompted perhaps by the heinousness of the underlying action.
You mean these people should be accountable for their money when government itself is not?
Uncle Sam you sonofa .
Jk Bro, don't audit me.
Switzerland threatens to seize UBS client info.
Well, Switzerland has the right to do as the please. They have been know for as long as I ca recall, a place to hide money. I believe they will do all they can to protect that reputation.
As for the money. Who wouldn't want to hide money from a thieving government. One more reason to move to a consumption based tax system. Then everyone who get paid under the table gets taxed when they make purchases, and you get taxed on what you can actually afford rather than what you cannot.
VAT? How uncharacteristically euro of you, WC.
Not the same type of consumption tax as a VAT, but The Fair Tax.VAT? How uncharacteristically euro of you, WC.
Haven't you learned yet not to read into my words? Both the VAT and The Fair tax are types of consumption taxes. They have differences. However, I would prefer a VAT over our current income tax system.
It really needs four times the cosponsors than it has to get anywhere. Congress would lose their power over the people if they passed such a tax code.
Sponsor: Rep Linder, John [GA-7] (introduced 1/6/2009)
Cosponsors:
Rep Akin, W. Todd [MO-2] - 1/6/2009
Rep Alexander, Rodney [LA-5] - 1/6/2009
Rep Bachus, Spencer [AL-6] - 1/6/2009
Rep Barrett, J. Gresham [SC-3] - 6/8/2009
Rep Bartlett, Roscoe G. [MD-6] - 1/6/2009
Rep Bilbray, Brian P. [CA-50] - 1/6/2009
Rep Bilirakis, Gus M. [FL-9] - 5/21/2009
Rep Bishop, Rob [UT-1] - 3/12/2009
Rep Boren, Dan [OK-2] - 5/14/2009
Rep Brady, Kevin [TX-8] - 1/6/2009
Rep Broun, Paul C. [GA-10] - 2/24/2009
Rep Brown, Henry E., Jr. [SC-1] - 1/6/2009
Rep Brown-Waite, Ginny [FL-5] - 1/6/2009
Rep Burton, Dan [IN-5] - 1/6/2009
Rep Carter, John R. [TX-31] - 1/6/2009
Rep Conaway, K. Michael [TX-11] - 1/6/2009
Rep Crenshaw, Ander [FL-4] - 1/23/2009
Rep Culberson, John Abney [TX-7] - 1/6/2009
Rep Deal, Nathan [GA-9] - 1/6/2009
Rep Duncan, John J., Jr. [TN-2] - 1/6/2009
Rep Fallin, Mary [OK-5] - 1/6/2009
Rep Fleming, John [LA-4] - 3/12/2009
Rep Franks, Trent [AZ-2] - 1/6/2009
Rep Gingrey, Phil [GA-11] - 1/6/2009
Rep Graves, Sam [MO-6] - 2/25/2009
Rep Hensarling, Jeb [TX-5] - 1/6/2009
Rep Issa, Darrell E. [CA-49] - 1/9/2009
Rep Jenkins, Lynn [KS-2] - 2/24/2009
Rep King, Steve [IA-5] - 1/6/2009
Rep Kingston, Jack [GA-1] - 1/6/2009
Rep Kline, John [MN-2] - 3/12/2009
Rep Lamborn, Doug [CO-5] - 1/6/2009
Rep Lucas, Frank D. [OK-3] - 1/6/2009
Rep McCaul, Michael T. [TX-10] - 1/6/2009
Rep Mica, John L. [FL-7] - 1/9/2009
Rep Miller, Gary G. [CA-42] - 1/14/2009
Rep Miller, Jeff [FL-1] - 1/27/2009
Rep Moran, Jerry [KS-1] - 1/13/2009
Rep Myrick, Sue Wilkins [NC-9] - 1/8/2009
Rep Neugebauer, Randy [TX-19] - 1/6/2009
Rep Olson, Pete [TX-22] - 1/26/2009
Rep Pence, Mike [IN-6] - 1/6/2009
Rep Poe, Ted [TX-2] - 1/6/2009
Rep Posey, Bill [FL-15] - 1/27/2009
Rep Price, Tom [GA-6] - 1/6/2009
Rep Roe, David P. [TN-1] - 4/21/2009
Rep Stearns, Cliff [FL-6] - 1/6/2009
Rep Sullivan, John [OK-1] - 1/6/2009
Rep Thornberry, Mac [TX-13] - 1/6/2009
Rep Tiahrt, Todd [KS-4] - 1/6/2009
Rep Wamp, Zach [TN-3] - 3/12/2009
Rep Westmoreland, Lynn A. [GA-3] - 1/6/2009
Rep Whitfield, Ed [KY-1] - 2/3/2009
Rep Wittman, Robert J. [VA-1] - 1/6/2009
Rep Young, Don [AK] - 1/6/2009
What bill, please?
Also known as H. R. 25
The are even two books out explaining it:
The Fair Tax
it took me 2 seconds with google.
I'm sorry,VLE.
Have I been careless about posting links?
Thanks, WC. I appreciate the links.
The Fair Tax will NEVER happen.
The tax system is too rigged now in factor of the wealthy and capitalists.
They won't ever let anybody (aka Congress) move their cheese.
Same with reducing health care costs, which are also health care revenues for the health care system players. Ain't gonna happen. US health care is screwed up because people screwed it up and want it screwed up.
Isn't the Boortz the hate-radio s bag who said Muslims are like roaches, they come out after dark to eat?
I'm not sure how the VAT would help much. It would move/keep a lot of the economy underground and lead to draconian measures to track the movement of money.
Oh goodie, a tax methodology circle jerk. How about dropping the welfare-warfare state and enjoying some liberty?
Sure, why not?
Done.
I'm thinking the drinking club is the ideal political unit. Otherwise, who would ever come?
It also weeds out the weak livers.
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