A Swiss Bank was recently ordered to pay a fine by the United States Department of Justice (DOJ) after it helped citizens of the U.S. hide billions of dollars in assets. According to reports, the bank was ordered to pay a $200 million fine and $122.9 million which had been identified as part of a criminal investigation of Americans who had hidden their assets in Swiss banks to evade taxes.
The Justice Department and IRS said in a joint statement that the Swiss bank had agreed to fully cooperate with authorities and to pay the amount for “intentionally helping United States taxpayers hide assets and income offshore.” The Swiss bank was not named in the investigation, however, the authorities were clear that the institution “had demonstrated a clear pattern of helping U.S. taxpayers conceal assets and income through foreign corporations, offshore trusts, and other international financial structures.”
The fine is a large victory for U.S. investigators as it signals a tougher stance on institutions which facilitate offshore tax evasion. According to the IRS’s special agent in charge of the investigation, the government “will not hesitate to prosecute organizations and individuals who facilitate offshore tax evasion.”
This latest settlement comes as part of the Department of Justice’s continuing efforts to combat offshore tax evasion. In 2009, the DOJ launched an investigation which has so far identified more than 43,000 U.S. individuals who have hidden billions of dollars in assets with the help of foreign banks. The DOJ have also obtained over $8 billion in fines from nearly 80 banks and other institutions from around the world.
This case in particular exemplifies the commitment of the Justice Department and the IRS to crack down on offshore tax evasion. The decision also sends a strong message to other financial institutions that if they are caught helping Americans evade taxes, they can expect stiff penalties. It remains to be seen whether or not this decision will serve as a deterrent to others in the banking industry, but it certainly does demonstrate the government’s commitment to combating offshore tax evasion and punishing those who assist in the illegal activity.
