Ubs Ag, Tax Evasion, Washington 2009

Swiss Bank Agrees to Provide US with Account Information and Pay $780 Million in Fines and Restitution

WASHINGTON – In a landmark agreement, UBS AG, Switzerland’s largest bank, has agreed to provide the US government with information about its US customers who have undeclared bank accounts. This move comes after the bank entered into a deferred prosecution agreement with the government, admitting guilt on charges of conspiring to defraud the US by impeding the Internal Revenue Service (IRS).

The agreement, which was reached in February 2009, requires UBS to provide the US with the identities and account information for certain US customers of UBS’s cross-border business. UBS has also agreed to exit the business of providing banking services to US customers with undeclared accounts and pay $780 million in fines, penalties, interest, and restitution.

According to government officials, this agreement marks a significant victory in the fight against tax evasion. The US government has long been concerned about the use of offshore accounts by US taxpayers to evade paying their taxes.

In addition to the agreement with UBS, the government has also taken action against other banks and financial institutions that have been accused of helping US taxpayers evade their taxes. The government has brought civil and criminal charges against these institutions, seeking to recover billions of dollars in unpaid taxes.

The settlement with UBS is a major step forward in the government’s efforts to crack down on tax evasion. By providing the US with information about its US customers, UBS has taken a significant step towards transparency and cooperation.

“The government is committed to ensuring that all taxpayers comply with their tax obligations,” said John DiCicco, Acting Assistant Attorney General for the Tax Division. “We will continue to use all available law enforcement tools to recover tax revenue and to punish tax offenders.”

The IRS appreciates the strong support of the Justice Department in their continuing work to enforce the nation’s tax laws. The combined efforts of the Justice Department and the IRS make a real difference for the hard-working taxpayers who file and pay their taxes every year.

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