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
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger
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.