Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Swiss Bank Julius Baer Receives IRS Information Request
Author: Scarinci Hollenbeck, LLC
Date: June 7, 2013
Key Contacts
Back
Julius Baer, Switzerland’s third-largest wealth manager, recently informed a number of American clients that the details of their accounts may receive an IRS information request. The Swiss bank noted that many of its American clients’ accounts fall in line with the tax evasion probing criteria outlined by the IRS, and therefore must be disclosed to the U.S. government.
While the IRS has been hesitant to disclose any information on its probe into the accounts, a spokesperson for the Zurich-based bank said that the request is in accordance with a double-taxation agreement between the U.S. and Switzerland that has been in place since 1996. However, the representative would not detail how many Americans are suspected of skirting their federal tax law obligations. The agency is currently looking at accounts that were opened or maintained by the bank between 2002 and 2012.
“The Swiss government is taking a broad interpretation of the treaty to allow the handover of data in cases involving offshore structures,” Milan Patel, a former IRS trial attorney, told Bloomberg. “The banks seem willing to oblige to show they are cooperating with the U.S. once the Swiss government approves the turnover to avoid any violation under Swiss banking secrecy.”
Julius Baer is one of 14 Swiss banks included in a U.S. Department of Justice investigation, which is focused on determining the banks’ complicity in helping U.S. clients evade their taxes through the use of offshore accounts. Many Swiss institutions have shied away from conducting business with wealthy American clients since the $780 million agreement between the U.S. and UBS AG, in which the bank admitted to helping U.S. clients circumvent federal tax laws, according to MarketWatch. Most recently, Switzerland’s oldest financial institution, Wegelin & Co., pleaded guilty in a Manhattan federal court to helping countless American clients conceal more than $1.2 billion from the IRS. The bank has since closed.
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business, International Law & Trade
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.