U.S. and foreign banks in talks for tax settlement
A high-profile tax settlement between the U.S. government and UBS in 2009 has led U.S. officials to investigate several European and Swiss banks which could result in a settlement permitting these banks to avoid tax evasion charges.
A high-profile tax settlement between the U.S. government and UBS in 2009 has led U.S. officials to investigate several European and Swiss banks which could result in a settlement permitting these banks to avoid tax evasion charges.
These findings come on the heels of the recent Foreign Account Tax Compliance Act. A bill adopted by the U.S. in 2010, FATCA requires all foreign banks to share information concerning the transactions of their U.S. clients, according to Reuters.
While the 2009 tax settlement resulted in UBS paying $780 million to the U.S. in order to avoid tax evasion charges, this tax settlement case between the U.S. and several Swiss and European banks is expected to reach the multi billion dollar mark with an official decision coming as soon as July.
While the FATCA bill will force compliance with most foreign banks, it could run into problems down the line with Canadian banks, said Florida tax attorney, Darrin T. Mish in his blog. Canadian law does not require its banks to obtain information regarding the citizenship of its clients and the high cost of obtaining this information could prevent Canada from complying with FATCA.
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