Reuters: Regulatory News: U.S. submits new request on alleged tax cheats, C.Suisse says

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U.S. submits new request on alleged tax cheats, C.Suisse says Aug 3rd 2012, 14:13 Fri Aug 3, 2012 10:13am EDT * Swiss banks under US scrutiny for helping tax dodgers * Swiss court ruled against CS client data handout in April * US had submitted request that was too vague, court found * Swiss distinguish between tax evasion and tax fraud ZURICH, Aug 3 (Reuters) - The United States has submitted a fresh request to Switzerland for information on former clients of Credit Suisse suspected of cheating on their U.S. taxes, a ft er an earlier attempt was blocked by a Swiss court, th e bank said on Friday. The two countries have for years been locked in a conflict over the fact that wealthy Americans are dodging taxes by hiding money in Swiss accounts. Washington is pressuring banks in Switzerland to divulge their names and financial details. A spokesman for the Swiss Federal Tax Administration said it had received a request for administrative assistance from the United States on July 9, but that he could give no further details such as the name of any bank concerned. Eleven Swiss banks including Credit Suisse and Julius Baer are under investigation in the United States for aiding U.S. citizens who are suspected of dodging taxes. "I can confirm that it concerns former clients," a spokesman for Credit Suisse said. Switzerland is trying to get the investigations dropped in return for the payment of fines and the transfer of U.S. client names and is also seeking a deal to shield the remainder of its 300-odd banks from U.S. prosecution. The U.S. request is likely to be a revised version of one submitted last year, which was ruled void by a Swiss court in April because it did not list clients' names. Instead, it was based on vaguer criteria that pointed to tax evasion, the court found. Unlike most countries, Switzerland has distinguished between tax fraud, which is illegal, and tax evasion, which is not. Under a new deal, which has yet to be ratified by the United States, Switzerland would assist U.S. authorities in cases of tax evasion as well as tax fraud. Flagship bank UBS agreed in 2009 to hand over names of more than 4,000 of its account holders and pay a $780 million fine to settle criminal charges it helped U.S. citizens dodge taxes. In an attempt to avoid a repeat of such legal wrangles holding up a new deal, the Swiss parliament approved a plan in February that would allow U.S. officials to request information on suspected tax cheats based solely on their behaviour rather than name or bank account number. Link this Share this Digg this Email Reprints

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