Liening on the international 1% elite income hiders

The US could indict Swiss banks, and possibly even cut them off from the dollar market.

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"The bill is the result of pressure from the US following revelations that Swiss banks had helped American account holders to evade taxes.

The US had demanded action by 1 July, but the Swiss parliament summer session ends this week.

The bill will now return to the Senate.

The lower house decided by 126 votes to 67 not to discuss the bill. A second rejection by the lower house would effectively kill the draft law.

The bill would allow Swiss banks to sidestep strict secrecy laws and release information relating to clients' accounts.

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It also contained secret clauses requiring the banks to pay an estimated $10bn (£6.4bn) in compensation for lost tax revenue.

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Swiss politicians are in no mood to change their laws because Washington tells them to, reports the BBC's Imogen Foulkes from Berne.

The Senate very reluctantly approved the bill last week, after it became clear the US would indict Swiss banks, and possibly even cut them off from the dollar market if it did not go through.

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Switzerland has also come under pressure from the EU over the issue.

In January Switzerland's oldest private bank, Wegelin, closed after being indicted and fined $58m by the US authorities after admitting in court to helping American customers to hide more than $1.2bn from the Internal Revenue Service. In 2009, Swiss bank UBS paid $780 million and handed over details of more than 4,000 accounts in order to avoid indictment.

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http://www.bbc.co.uk/news/world-europe-22954374

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Comments

  1. livelonger

    Leaders of the G8 major economies have agreed new measures to clamp down on money launderers, illegal tax evaders and corporate tax avoiders.
    Governments agreed to give each other automatic access to information on their residents’ tax affairs.

    They will also require shell companies – often used to exploit tax loopholes and invest money anonymously – to identify their effective owners.

    The summit communique urged countries to “fight the scourge of tax evasion”.
    The measures are designed to combat illegal evasion of taxes, as well as legal tax avoidance by large corporations that make use of loopholes and tax havens.

    Leaders agreed that multinationals should tell all tax authorities about what taxes they pay and where.
    “Countries should change rules that let companies shift their profits across borders to avoid taxes,” the communique said.


    It follows revelations about the ways in which several major firms – including Google, Apple, Starbucks and Amazon – have minimised their tax bills.

    Illegal activities, including tax evasion and money laundering, will be tackled by the automated sharing of tax information.

    Ahead of the summit, the Organisation for Economic Co-operation and Development (OECD), proposed to share tax information by building on an existing system set up by the US and five major European economies, but on a global scale.

    “This international tax tool is going to be a real feature of ensuring that we get proper tax payment and proper tax justice in our world,” said Mr Cameron, who claimed that it meant “those who want to evade taxes have nowhere to hide”.

    The OECD includes all of the G8 members except Russia.

    Among the information to be shared will be who actually ultimately benefits from the shadowy shell companies, special purpose companies and trust arrangements often employed by tax evaders and money launderers.

    Earlier in the day, Chancellor George Osborne unveiled plans for a UK register of companies and their owners.

    The White House also announced a similar plan for the US.

    Last week the UK also unveiled a deal with its crown dependencies and overseas territories – including the Channel Islands, Gibraltar and Anguilla – to start sharing more information on which foreign companies bank their profits there.

    About a fifth of offshore tax havens, which are used by multinationals to shelter cash from the tax authorities, are British dependencies.


    The G8 communique also demanded more transparency from mining firms.

    It follows revelations that many major mining companies use complex ownership structures in the Netherlands and Switzerland to avoid paying taxes on the minerals they extract in developing countries.

    “Developing countries should have the information and capacity to collect the taxes owed them,” the communique said.

    “Other countries have a duty to help them.”

    The governments agreed that mining companies should disclose all the payments they make, and that “minerals should not be plundered from conflict zones”.

    “We agreed that oil, gas and mining companies should report what they pay to governments, and that governments should publish what they receive, so that natural resources are a blessing and not a curse,” said Mr Cameron."
    http://www.bbc.co.uk/news/business-22956374

    June 18, 2013
  2. wirelessguru1

    Come on, the Swiss have been hiding the wealth of the ruling elites for a long time so why do you claim now that this is a new “revelation”!?

    June 18, 2013
    1. livelonger

      OK … so point out by quoting from above that there’s ANY statement it’s a new revelation.

      June 18, 2013
      1. wirelessguru1

        “The bill is the result of pressure from the US following revelations that Swiss banks had helped American account holders to evade taxes”.

        June 18, 2013
        1. livelonger

          If you can believe that bills are made instantly when hearing of it. The reports of this are several years old.

          June 18, 2013
          1. wirelessguru1

            Hello, hello, they have been doing this shit for much, much longer than just “several years”!
            They also protect the Vatican, etc, etc!!!
            Essentially the Swiss protect the ruling elites and THEIR slavery system(S)!

            June 18, 2013
  3. 29A

    So the Swiss are giving the US the finger.
    .
    The Foreign Account Tax Compliance Act (FATCA) is a portion of the 2010 Hiring Incentives to Restore Employment (HIRE) Act that requires individuals to report their financial accounts held overseas and foreign financial institutions to report to the Internal Revenue Service (IRS) about their American clients. http://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act
    .
    ‘January 18, 2013
    The final FATCA rules require foreign financial institutions to report information to the U.S. regarding American accounts with more than $250,000 in assets or face a 30 percent withholding tax. The original proposal from February required reporting of accounts with at least $50,000. … U.S. regulators also extended compliance deadlines, meaning FATCA will not be in full effect until 2017.
    .
    Switzerland entered into a so-called Model 1, where the country’s banks report U.S. account holders and potential tax cheats to Swiss authorities, who then pass the information on to the IRS. ’
    http://www.law360.com/articles/408501/foreign-regulators-may-bargain-before-us-tax-cheat-law

    June 18, 2013
    1. livelonger

      As wiseguyguru above states, it’s been happening for centuries. There really isn’t much else in Switzerland to create wealth other than being vacationland for the wealthy while they stash their hidden money.
      .
      IMO the most important statement from above is:
      .
      “It follows revelations that many major mining companies use complex ownership structures in the Netherlands and Switzerland to avoid paying taxes on the minerals they extract in developing countries.

      “Developing countries should have the information and capacity to collect the taxes owed them,” the communique said.

      “Other countries have a duty to help them.”

      The governments agreed that mining companies should disclose all the payments they make, and that “minerals should not be plundered from conflict zones”.

      “We agreed that oil, gas and mining companies should report what they pay to governments, and that governments should publish what they receive,"
      .
      That’s why there are as many wars as possible to prevent nationalization of natural resources, so the elite can stash what they rob from the poor in developing nations (and keep from paying taxes to the US.)

      June 18, 2013
      1. wirelessguru1

        Duh, duh, duh! Of course that’s why there are many wars so that the ruling elites can continue to stash what they rob from the poor…and please refer to me (the great one) as the wise&smart&handsomeguyguru…

        June 18, 2013
      2. 29A

        ‘There really isn’t much else in Switzerland to create wealth other than being vacationland for the wealthy while they stash their hidden money. ’
        .
        If countries could depend on receiving proper taxes on profits realized within the country, it should cut down on the need for services the IMF and the World Bank provide. Conservatives and free-market thinkers always rail about the need for self-sufficiency, yet have a disconnect when it comes to tax codes at the country and international level which give such companies the ability to avoid taxes, the result being that those countries can’t be self-sufficient.
        .
        I don’t know why it doesn’t get seized on by more people that these low-tax and other income havens really aren’t contributing to the international security apparatus, the majority of which the US provides.
        .
        I’m a bit torn between the either/or situation of nationalization or privatization of natural resources, because in the case of Venezuela, oil production decreased after the industry was nationalized. Then you have the CEO of Nestle calling for the privatization of water, an indication there’s certainly something out of wrong with the world of free-market capitalism.

        June 19, 2013
  4. Neighsayer

    I’m tellin’ ya: this is one way the coming global government could be a very good thing. The criminals are global, so the cops will have to be. This could be the start of something very, very good.

    June 19, 2013
    1. livelonger

      The same argument that right-wingers have about US state government reacting better to the people of their state than a federal government
      applies to
      national governments reacting to their voters better than a global government. A global government writing a book of rules, like a constitution, would be difficult to cover all peoples.
      .
      The problems in Iraq and many other nations when different religious and ethnic groups were forced together by colonial conquerers like the British and Russians in Asia still cause eternal fighting.
      .
      The same difficulties of funding a national government through loose cooperation as the US had with the Articles of Confederation apply now to the UN and any future government.
      .
      IMO it’s better to leave national governments to handle their area while a global government provides international services as the UN is now. Many nations griping about the elites stealing their wealth through hiding it in a few banks would be better than a global elite occupying the global government. I see a global government as a bad idea, as it leaves world power in the global government. I wouldn’t want to wait while a global supreme court finalized an idea for everyone in the world.

      June 19, 2013
      1. Neighsayer

        I hear that, I just think that it’s going that way, like it or not, and that even if everything else about it sucks, world banking police might be just what we need considering that multinational companies have what adds up to really massive tax loopholes. I take it you’re suggesting that individual countries can work together to police that?

        June 19, 2013
  5. GoldenPig2012

    I am of two minds on this subject. On one hand, I find it laughable the U.S can “indict” another country for doing whatever they want, who the hell are we to say they can or cannot do anything? Then, yes, I want those hiding ill-gotten gains or evading taxation to be held accountable to the law of the country in which they made so much money.
    “Global” anything sounds so……………….ominous. Pretty sure I don’t like the sound of it. In any capacity, even if it means my country misses out on a few billions. Yep, I’m sure I don’t like the sound of it. I don’t want global police, I don’t want global security, not if it means an entire nation is held hostage by threats by another nation. To me, that’s……………………well, evil and self-righteous and self-indulgent.

    June 19, 2013
    1. livelonger

      Reducing oil production when the population of the country that produces it has no need for all the production isn’t bad in itself. The gripe is that foreign international corporate oil interests don’t have the control to push more production for their profit. It may be a slight loss for the world; but it is the property of the nation it comes from.

      June 20, 2013