Monday, November 24, 2008
"The developments amount to a coup for U.S. authorities, who have spent the past two decades trying to crack offshore banking markets with only incremental progress," the newspaper said.
At the same time, the Journal said, the IRS is considering a national settlement for the estimated 20,000 taxpayers that worked with UBS to avoid taxes. The settlement reportedly would be based on a 2003 landmark offshore credit-card and tax-fraud deal but with stiffer penalties.
See "UBS clients seek amnesty on U.S. taxes."
Friday, November 14, 2008
Cross-border financing transactions allow companies with overseas subsidiaries to pay foreign taxes, receive a U.S. credit for paying those taxes and then effectively split the credit with foreign lenders which in turn lower their interest costs.
The IRS position is that foreign tax credits shouldn't be allowed for those transactions because the U.S. would effectively be subsidizing the lending of foreign banks since the U.S. company and the foreign bank share the tax break.
In addition, AIG said it had settled a tax dispute related to "lease-in lease-out" tax shelters and anticipated recording an after-tax charge of between $34 million and $100 million in the fourth quarter of this year.
Thursday, November 13, 2008
The information about tax rates was included in a broader IRS study that examines the gap between income reported to shareholders and the consistently lower income reported to tax authorities, which was published by IRS researchers in the trade journal, Tax Notes.
The indictment against Raoul Weil was filed in U.S. District Court in Fort Lauderdale, Fla. The Wall Street Journal called it "the latest U.S. move aimed at pressuring Swiss banking officials to reveal the names of their American account holders." See "Top banker cited in tax-dodge case."
For more information see:
- "Swiss bank executive charged with aiding U.S. taxpayers evade income tax" (U.S. Department of Justice press release)
- "UBS executive indicted in U.S. inquiry" (The New York Times)
- "Top UBS executive indicted in Florida," (The Washington Post)
- "UBS shares drop after U.S. indicts top banker" (Reuters)