Swiss Federal Administrative Court Seems to be on Our Side

http://www.rts.ch/info/suisse/3916656-la-justice-suisse-affaiblit-l-accord-d-entraide-fiscale-avec-les-etats-unis.html$

The court said that mere tax evasion (not fraud) was not a reason for Switzerland to provide information to the IRS.

“Et le tribunal maintient que le fait de ne pas déclarer un compte ne constitue pas une fraude.” (The court maintains that not declaring an account does not constitute a fraud).

This is excellent news, I just hope that parliament doesn’t screw it up.

Here is the New Zurich Newspaper article on the same decision.  It goes into more specific details.  I don’t have time to do a manual translation from German so you’ll have to try Mr. Google. http://www.nzz.ch/nachrichten/wirtschaft/aktuell/amtshilfe-gestoppt_1.16381062.html

Also, here is the Bloomberg coverage for the same (in English): http://www.businessweek.com/news/2012-04-11/swiss-court-rejects-disclosure-of-credit-suisse-client-s-data

Advertisements

8 thoughts on “Swiss Federal Administrative Court Seems to be on Our Side

  1. @jeffersondtomas- this is good news indeed. Let’s hope that it starts a flood of similary rulings in other countries or at least gets other nations to take a second look at becoming FATCA compliant.

  2. The first bloomberg article says:

    The ‘search criteria’ for the identification of bank clients, as set out in the request for administrative assistance, are formulated in terms encompassing above all mere tax evasion, for which administrative assistance cannot be granted,” the Federal Administrative Court said in a April 5 ruling published today.

    The words “mere tax evasion” I find extremely interesting. The progressives in the world want to make tax invasion into a capital crime. It is refreshing to see it treated as a lesser crime. The fact is that everyone, everywhere, participates in it. We have a huge GST/PST/HST to underground economy in Canada, where we pay people cash to avoid paying tax. But if you put your money in an offshore account, you deserve to be thrown in prison, be fined 300% of your assets? Many of the whales in this picture are only belugas not blues.

    I was once told by a American who lived in France that nobody pays all their taxes there. It would be impossible to do so. So everyone plays the game of tax evasion.

  3. I can’t believe that the IRS asked for information on all US clients who did not file a W-9 with Credit Suisse in Switzerland.

    Although I can understand the IRS reasoning, it takes a pretty dull bureaucracy to treat a foreign bank the same as a domestic bank.

    And furthermore, to expect Swiss laws and courts to conform with US laws and courts is showing ignorance at best.

Comments are closed.