47,000 Potential Claims? Only 5000 UBS Names to be Released

Two Swiss newspapers are reporting that UBS has agreed to release 4500 to 5000 names of its US clients in the recent settlement agreement between the United States and the Swiss bank. The United States had gone to federal court seeking to force UBS to identify its 52,000 United States citizens, many of whom are thought to be committing tax fraud by hiding assets in secret accounts.

NZZ am Sonntag, one of the weekly newspapers, reports that the agreement was grounded on a 1996 US/Swiss tax agreement, allowing the Swiss cabinet to sign off on the deal without having to seek approval through the Swiss parliament. The 1996 agreement obliges Switzerland to provide the US with assistance in criminal prosecutions for tax evasion. NZZ says small accounts would not be reported, and account holders threatened with disclosure would have the right to challenge disclosure in Swiss courts.

Under another agreement earlier this year, UBS paid $780 million to settle criminal charges in the US, and it disclosed information on 250 United States clients. The fourth prosecution of a UBS client ended with a guilty plea on Friday, August 14. Malibu businessman John McCarthy admitted that he transferred at least one million dollars into secret UBS accounts over a five year period to avoid paying US taxes.

Earlier reports stated that the IRS would consider the UBS litigation a failure if UBS did not disclose at least 10,000 names; unofficially, now, all parties are describing the agreement as a success.

Approximately 47,000 United States citizens will continue to enjoy secret Swiss accounts. Whistleblowers should work to identify which of these account holders are hiding their assets to reduce their tax obligations. If you know of a United States citizen who is hiding assets in UBS, or elsewhere, call for a free tax fraud consultation today.