Swiss bank fined $122.9M for aiding US clients in concealing billions
OAN’s James Meyers
1:28 PM – Monday, December 4, 2023
A private Swiss bank has been ordered to pay $122.9 million in back taxes and penalties after admitting to helping their clients hide assets from the Internal Revenue Service (IRS) between 2008 and 2014.
On Monday, federal prosecutors said Swiss private bank Pictet has entered into a deferred prosecution agreement with the Justice Department.
According to prosecutors, U.S. taxpayers with the Pictet accounts in Switzerland and elsewhere evaded almost $50 million in taxes between 2008 and 2014.
“This case should provide a clear message to others who try to hide their assets and income offshore,” Jim Lee, the chief of the IRS’ criminal investigation division, said in a statement.
Additionally, Pictet has been ordered to implement remedial measures and cooperate with the investigation. If Pictet complies with the investigation for three years, U.S. prosecutors will remove charges of conspiring to defraud the IRS.
“Pictet is pleased to have resolved this matter and will continue to take steps to ensure its clients meet their tax obligations,” the bank said in a statement.
The charges against Pictet come after Credit Suisse agreed to pay a $2.5 billion fine in 2014 for helping American clients evade taxes for decades. However, prosecutors also said that while Pictet helped adopt measures to make sure their U.S. clients complied with the law, it simultaneously helped customers store hidden funds from the IRS in offshore accounts.
According to prosecutors, the bank’s regurgitated funds include $52 million in fees that Pictet earned from the undeclared accounts, $32 million in unpaid taxes, and a $39 million additional penalty.
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What penalties did the private Swiss bank, Pictet, face for its involvement in tax evasion?
Title: Swiss Bank Ordered to Pay $122.9 Million in Back Taxes for Assisting Clients in Tax Evasion
Introduction
In a significant development, a private Swiss bank has been ordered to pay a staggering $122.9 million in back taxes and penalties after confessing to aiding clients in hiding assets from the Internal Revenue Service (IRS) between 2008 and 2014. The case highlights the ongoing battle against tax evasion and emphasizes the consequences for those who engage in such activities.
Background
The private Swiss bank, Pictet, has admitted to its participation in helping wealthy clients evade taxes in an agreement reached with the Department of Justice. According to federal prosecutors, American taxpayers holding Pictet accounts in Switzerland and other locations evaded nearly $50 million in taxes during the period mentioned.
Cracking Down on Offshore Tax Evasion
The implications of this case are far-reaching. In a statement, Jim Lee, chief of the IRS’ criminal investigation division, emphasizes that it serves as a clear signal to individuals attempting to disguise their assets and income offshore. The IRS is determined to uncover instances of tax evasion and will hold those accountable for their actions.
Deferred Prosecution Agreement
As part of the deferred prosecution agreement, Pictet has been ordered to pay $122.9 million in back taxes and penalties. Furthermore, the bank is required to implement remedial measures and fully cooperate with the ongoing investigation. If Pictet complies with the investigation requirements for three years, U.S. prosecutors have committed to dropping charges of conspiring to defraud the IRS.
The Bank’s Response
In a statement, Pictet expressed its satisfaction with resolving the matter and its commitment to supporting clients in fulfilling their tax obligations. The bank acknowledges the importance of adherence to tax regulations and pledges to take further steps to ensure compliance.
Similar Cases and Continuing Efforts
The charges brought against Pictet follow a previous case involving Credit Suisse, which, in 2014, agreed to pay a substantial $2.5 billion fine for its role in helping American clients evade taxes for over a decade. These cases highlight the extensive efforts undertaken to combat tax evasion and the seriousness with which authorities view such activities.
Conclusion
The order for Pictet to pay $122.9 million in back taxes marks a significant moment in the global fight against offshore tax evasion. It sends a powerful message to all individuals and financial institutions that the consequences for aiding in such schemes will be severe. As governments worldwide intensify their efforts to combat tax evasion, cases like Pictet and Credit Suisse serve as reminders that there is no escape from the long arm of the law.
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