Swiss Life Entities, Tax Evasion, New York 2024
Swiss Life Entities Admit to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore Accounts
In a major blow to international tax evasion, Swiss Life Holding AG, Swiss Life (Liechtenstein) AG, Swiss Life (Singapore) Pte. Ltd., and Swiss Life (Luxembourg) S.A. have admitted to conspiring with U.S. taxpayers to hide assets and income in offshore accounts.
According to court documents, the four entities, collectively known as the Swiss Life Entities, created and marketed specially designed insurance products to U.S. tax evaders seeking a new way to hide their offshore assets.
Between 2005 and 2014, the Swiss Life Entities worked with affiliated insurance carriers in Liechtenstein, Luxembourg, and Singapore to offer private placement life insurance policies and related investment accounts to U.S. customers.
The entities provided services that concealed the policies and other assets from the IRS, and even saw U.S. authorities' stepped-up offshore tax enforcement as an opportunity to pitch themselves to tax-evading U.S. customers as an alternative to Swiss banks.
As part of a deferred prosecution agreement, the Swiss Life Entities have agreed to accept responsibility for their criminal conduct and to pay approximately $77.3 million to the U.S. Treasury, which includes restitution, forfeiture of all gross fees, and a penalty component.
The entities have also agreed to refrain from all future criminal conduct, enhance remedial measures, and continue to cooperate fully with further investigations into hidden insurance policies and related policy investment accounts.
“Swiss Life today is held responsible for creating and marketing specially designed insurance products to U.S. tax evaders seeking a new way to hide their offshore assets, in light of heightened Justice Department and IRS tax enforcement efforts,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
“Financial enablers here and abroad – and the taxpayers seeking their services – should know that we will continue to identify and unmask such schemes,” he added.
The successful resolution of this investigation is an important victory for the American taxpayer, said Chief James C. Lee of the IRS Criminal Investigation. “The recovery of more than $77 million owed to the U.S. government sends an unequivocal message that offshore evasion is still a high priority of IRS Criminal Investigation.”
Defendant: Swiss Life Holding AG, Swiss Life (Liechtenstein) AG, Swiss Life (Singapore) Pte. Ltd., and Swiss Life (Luxembourg) S.A.
Criminal Charges: Conspiracy to defraud the United States.
City and State: New York
Exact Date: N/A (deferred prosecution agreement)
Sentence or Outcome: Deferred prosecution for three years, subject to compliance with the terms of the agreement, and payment of $77.3 million to the U.S. Treasury.
Dollar Amounts: $77.3 million
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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