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IRS Criteria for UBS Client Disclosures
You just have to love a document that begins by begging apology for brazenly ignoring what were once general legal principles.
It is understood that a request for exchange of information generally requires the clear identification of the person(s) concerned. However...
However indeed. It's a pretty big "However." A "However" that goes on to reach out and touch:
A. US domiciled clients of UBS who directly held and beneficially owned “undisclosed (non-W-9) custody accounts” and “banking deposit accounts” in excess of CHF 1 million (at any point in time during the period of years 2001 through 2008) with UBS and for which a reasonable suspicion of “tax fraud or the like” can be demonstrated, or
B. US persons (irrespective of their domicile) who beneficially owned “offshore company accounts” that have been established or maintained during the period of years 2001 through 2008 and for which a reasonable suspicion of “tax fraud or the like” can be demonstrated.
We were tickled by the term "tax fraud or the like," a term that later references another interesting phrase: "scheme of lies."
Such “scheme of lies” may exist where, based on the Bank’s records, beneficial owners (i) used false documents; (ii) engaged in a fact pattern that has been set out in the “hypothetical case studies” in the appendix to the Mutual Agreement concerning Art. 26 of the Tax Treaty (for example, by using related entities or persons as conduits or nominees to repatriate or otherwise transfer funds in the offshore accounts); or (iii) used calling cards to disguise the source of trading. These examples are not exhaustive, and depending on the applicable facts and circumstances, certain further activities may be considered by the SFTA [Swiss Federal Tax Authority] as a “scheme of lies”.
You can't make this stuff up.
It is interesting to contemplate a situation where the United States, enforcing taxation on the worldwide income of its citizens, has effectively re-written criminal law in Switzerland. It's even more interesting that such language would be so cliche and tacky so as to include phrases that might find better place emblazoned alongside images of a swastika, a hypodermic needle and a bank vault, stuck to a paperback cover and relegated to the fiction section of JFK's Hudson Booksellers. The Swiss must just shake their heads in astonishment when they read prose like this. How absolutely humiliating. One can almost picture the discomfiture exhibited by a member of UBS' private banking arm, apologizing profusely as he describes to the client a potential "scheme of lies" interpretation related to her account.
If only Switzerland had bought a trillion or so in increasingly worthless U.S. government securities over the last dozen years or so Obama would today be asking Jean-Pierre Roth if he preferred one lump or two, instead of badgering the Confederation to break their own laws in order to enforce those of the United States. Lesson learned.
Given the growing exodus of productive firms from what could well be a fiscally doomed United States, clever Zero Hedge readers might expect more of this sort of thing, right before something approaching outright capital controls (explicit or not) take hold. With every tax dollar more and more precious, and where forbidding their departure is but a Treasury Notice away, how can any administration resist the urge to clamp down? And clamp down they will have to, once individual tax rates leap up to the 50-70% range that will be required to even begin to address the debt to be built up the next few years. One is reminded of the last, desperate calls on clients and friends made by Bernie Madoff.
While you wait, and for your entertainment ,we attach "Criteria for Granting Assistance Pursuant to the Treaty Request." Did you qualify for additional screening?
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Dear TD: I would like to comment on your next to last paragraph. But since I believe every word of it, I will proceed rapidly to the toilet and throw up. More when I return.
Sorry Marla. I should have guessed that was your poison pen and not TD.
My name is not "TD."
:)
IRS Amnesty?? 14,700 caught in the bluff net...
If they didn't fess up they would have had another ten years of freedom.. The only reason the IRS gave them a drop dead date is because they don't have the manpower to cover that waterfront and all the other holes in the net..
Americans have no idea that while they slept, our government took over our country and converted it quietly to one of soft Socialism. Steps like above are messages to us that over the next 5-10 years, government will not be so kind or quiet when taking our money. We are in the very early stages of converting a mature Democratic society to one of 70% Socialism, with some individual freedoms. These subtle signs are not good developments.
Footnote / In case one has overlooked it, our "quiet" government essentially controls, or is about to control these 7 areas: Housing, Banking/Finance, Auto industry, Energy, Health Care, Media, and now even large parts of Compesation. Combined, these areas alone probably constitutes 50-70% of all U.S. commerce. Here's the problem...what do we do, and, where do we go?
I see a neo feudalism escorted by fascism that began with PNAC and a migration to the Barack Obama left cover regime. Yes it will get very bad... I'm of the firm belief that the folks that can structurally pull it off should leave this country. This may sound extreme, however one only needs to look at what happened in other countries in the thirties to be reminded that once you slip as far as we have there is no turning back. We have to start now while there's still a remnant of freedom left as the democratic tools may not be available to us in the near future.
Benito Mussolini said: That fascism is more appropriately called corporatism as it is the merger of Corporations and State.
Amen, I've been planning my exit for the last 2 years. One or 2 more assets to unload and I'm out.
What continent?
Ther are consultanta that will walk you through your personal requirements.
-Language
-Weather
-Taxes
-Business Start up requirements
- Ease of monetary transfer.
The host of issues is long and you should consider them carefully.
Costa Rica / Panama???
I'm already in the middle of the process to become a perminant resident of Panama.
Breathtaking place,,,, Live long and prosper, Brother..
Dear Typical US Person,
dollar repatriation via debt destruction--->capital controls--->defalut??
I do recall Marc Faber stating that it was wise to keep your gold outside the US. Smart.
If you want to go that way, the Pirth Mint in an Allocated Account ONLY...
re: "Perth" Mint.
An old-time firm with a lot of history behind it.
But be careful. Some stuff to consider:
http://www.marketskeptics.com/2009/02/warning-about-perth-mint-gold.html
A great idea, but only if you live near Perth, W.A. I much prefer a location in the woods north of the city I live in where I have buried my stash. Instructions and a map are in my safe deposit box.
Oh it sounds soooo sneaky to hide things! giggle! Thank God we still can.
IRS will spend more than $1B to recover $1B , not to mention wasting other resources including court time etc.
Why did the Swiss not tell the IRS to shove it? The US has no jurisdiction there. I believe the Swiss have committed some sort of bad activity in the US and they are being blackmailed to get these names.
They need to come to their senses. Just turn in Bill Clinton and tell the IRS to go talk to China.