The US Internal Revenue Service (IRS) has said that it may drop a lawsuit against Swiss bank UBS after the Swiss government announced on August 26 that its examination of approximately 4,450 UBS clients accused of evading US taxes.
The IRS announced in a statement that based on information received from the Swiss federal government, it anticipates being able to "withdraw the John Doe summons this fall."
Concluded in August last year, an administrative assistance agreement between the US and Switzerland provides that UBS is to disclose to US authorities the names and bank details of 4,450 of its American clients, suspected of evading taxes over a number of years with the help of the Swiss banking giant. In return, civil charges against the bank will be dropped. The US authorities had originally sought the names and details of 52,000 clients of the bank. UBS also agreed to a fine of USD780m.
"The Federal Tax Administration has concluded its administrative assistance examination relating to approximately 4,450 UBS client dossiers. It has done so by the deadline set in the administrative assistance treaty with the United States," the Swiss federal government announced.
Despite a delay caused by the Swiss Federal Administrative Court's examination of the agreement, the Swiss government explained that the data delivery "will be largely concluded by autumn 2010."
"Talks are being held between the contracting parties regarding the final stage of the agreement's implementation. Both parties are optimistic that the US authorities will receive most of the agreed account information within a reasonable period of time and that the US authorities will definitively withdraw the civil action (John Doe Summons) brought against UBS," the Swiss government informed.
The IRS announced in a statement that based on information received from the Swiss federal government, it anticipates being able to "withdraw the John Doe summons this fall."
Concluded in August last year, an administrative assistance agreement between the US and Switzerland provides that UBS is to disclose to US authorities the names and bank details of 4,450 of its American clients, suspected of evading taxes over a number of years with the help of the Swiss banking giant. In return, civil charges against the bank will be dropped. The US authorities had originally sought the names and details of 52,000 clients of the bank. UBS also agreed to a fine of USD780m.
"The Federal Tax Administration has concluded its administrative assistance examination relating to approximately 4,450 UBS client dossiers. It has done so by the deadline set in the administrative assistance treaty with the United States," the Swiss federal government announced.
Despite a delay caused by the Swiss Federal Administrative Court's examination of the agreement, the Swiss government explained that the data delivery "will be largely concluded by autumn 2010."
"Talks are being held between the contracting parties regarding the final stage of the agreement's implementation. Both parties are optimistic that the US authorities will receive most of the agreed account information within a reasonable period of time and that the US authorities will definitively withdraw the civil action (John Doe Summons) brought against UBS," the Swiss government informed.
