IRS Will Get 4450 Names From UBS

Swiss newspapers report that the IRS will get up to 4,450 names of UBS clients as a result of the settlement of the legal battle between the United States, Switzerland, and UBS, the Swiss banking company. At stake were the secret identities of 52,000 US citizens who held deposits in UBS. Some commentators are pronouncing the deal as "the beginning of the end" of the famous Swiss secret accounting system.

More than 47,000 American citizens will remain undisclosed and could continue to hold deposits in UBS. Some predict that wealthy clients will move their Swiss accounts to new tax havens, like Singapore, because of the breach in the secret Swiss banking system.

Earlier this year, UBS faced criminal charges in the United States for assisting in tax evasion and disclosed 250 client identities as part of a settlement. The additional 4,450 names to be disclosed are linked to accounts in which Americans are believed to have hidden as much as $18 billion in income from the IRS. Swiss newspapers report that US clients face up to $3.7 billion in back taxes and penalties.

Switzerland today sold its investment in UBS and earned 1.2 billion Swiss francs for its citizenry. Switzerland said yesterday that UBS's recent gains and the US tax deal have helped stabilize the bank enough for the Swiss government to withdraw. Switzerland, like several other European nations, was forced to take partial ownership in the bank during Europe's recent financial crisis. The Swiss government reported it earned a return of 30% annually on the UBS investment.