DOJ pledges to respect Swiss law in tax probe: paper

ZURICH Sun Jan 6, 2013 7:29am EST

A logo of Swiss bank Credit Suisse is pictured at the company's headquarters in Zurich in this February 3, 2010 file photograph. REUTERS/Arnd Wiegmann/Files

A logo of Swiss bank Credit Suisse is pictured at the company's headquarters in Zurich in this February 3, 2010 file photograph.

Credit: Reuters/Arnd Wiegmann/Files

ZURICH (Reuters) - Swiss chief finance diplomat Michael Ambuehl was given a verbal pledge from the U.S. Department of Justice to respect Swiss law when asking for bank client data of potential tax dodgers, a newspaper reported on Sunday.

Switzerland is in negotiations with U.S. authorities to find a deal that would end tax probes into at least ten Swiss banks suspected of helping clients dodge taxes, including Credit Suisse and Julius Baer.

The Alpine country is trying to preserve what is left of its cherished banking secrecy that suffered a severe blow in 2009 when UBS, the first Swiss bank that came under scrutiny in the U.S., was required to disclose client data.

"(Ambuehl) obtained a verbal pledge from his negotiating partners at the DOJ to respect Swiss law when asking for client data," Swiss newspaper NZZ am Sonntag said, citing sources close to Ambuehl.

"The agreement has not been put in writing yet and could be withdrawn at any moment but sources say the U.S. government's negotiators have made it clear they want to find a pragmatic solution to the long-lasting conflict," the newspaper said.

Finance ministry spokesman Roland Meier refused to comment on the report which did not give any details on when the verbal agreement was made.

Swiss banking secrecy laws prevent banks from disclosing any information on the financial affairs of clients to third parties, unless there are sufficient grounds to suspect a crime has been committed.

Unlike in other countries, tax evasion, as opposed to tax fraud, is not considered a crime in Switzerland, but to get off the OECD's list of uncooperative tax havens, the country agreed to disclose client data also in well-founded cases of suspected tax evasion.

Swiss private bank Wegelin & Co, the only Swiss bank indicted in the U.S. so far, said on Thursday it would shut its doors permanently after pleading guilty to the charge of helping Americans dodge taxes through secret accounts.

The Wegelin settlement that involved a $74 million fine could smoothe the way to cheaper and faster settlements for other Swiss banks in the probe and give fresh impetus to talks between Swiss and U.S. officials.

(Reporting by Silke Koltrowitz; Editing by Mike Nesbit)

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Comments (1)
reality-again wrote:
Swiss law should be respected only to the extent that it doesn’t facilitate and encourage breaking US law.
No reason why I should have to pay more taxes here in the US as a result of Switzerland helping other American taxpayers to commit tax evasion and tax fraud.
For decades, Switzerland has been a bad citizen of the international community, and practically any dictator, rogue regime, crime organization and shady business figure on the globe have benefited from that countries crooked laws.
Time to end this.
Time for Switzerland to pay back its debt to the world.

Jan 06, 2013 8:30am EST  --  Report as abuse
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