UBS Tax Evasion Controversies Highlight Systemic Issues

The UBS tax evasion controversies have brought to light some serious systemic issues in the financial industry.

The Swiss bank UBS has been accused of helping thousands of Americans evade taxes on their offshore accounts.

In 2008, UBS agreed to pay a $780 million fine to settle a US tax evasion case, but the bank's involvement in tax evasion continued.

The controversy highlights the ease with which wealthy individuals can use offshore accounts to hide their assets and avoid paying taxes.

UBS has been involved in several tax evasion controversies over the years.

The bank is being investigated by US authorities for helping Americans evade taxes through investments banned in the US, specifically so-called "bearer bonds" that can be transferred without registering ownership.

UBS paid $780m in 2009 to settle a separate Justice Department tax-evasion probe, but the fresh investigation by the US Attorney's Office for the Eastern District of New York and the US Securities and Exchange Commission is ongoing.

In 2009, UBS paid $780m to settle a separate Justice Department tax-evasion probe.

The bank has also been fined over $1bn to settle past scandals, including a case in which it helped wealthy German clients evade tax.

UBS will disclose the identities of about 4,450 of its American clients with offshore bank accounts containing as much as $18 billion in its settlement with the US Government.

These clients have until September 23 to confess to the IRS about offshore bank accounts and receive more lenient treatment.

Under US law, citizens must provide the IRS with information on amounts over $10,000 held in offshore bank accounts.

The IRS then sued UBS for further names but settled the case this month after the Swiss bank agreed to give up the identity of clients.

UBS admitted that it helped some Americans hide money from the IRS, and the bank paid a $780 million fine and gave up the names of 250 clients.

Three of these clients have since pleaded guilty to tax evasion.

As a private banker for UBS, Bradley Birkenfeld was an expert in Switzerland's shell-game of offshore companies and secret numbered accounts.

Birkenfeld's client list included ultrawealthy individuals whose millions of dollars were hidden away from business partners, spouses, and tax authorities.

He lived a life of luxury, with fast cars and beautiful women, but his world was turned upside down when he discovered that UBS was planning to betray him.

Birkenfeld blew the whistle to the US Government, which had a significant impact on Swiss bank secrecy.

UBS's actions were a major breach of trust, and Birkenfeld's decision to speak out exposed the bank's complicity in tax evasion schemes.

The US Government took action, and Birkenfeld's testimony helped to bring down UBS's secrecy and expose the truth about their offshore accounts.

Birkenfeld's bravery came at a great personal cost, but it ultimately led to a significant shift in the way Swiss banks operate and the way they handle client confidentiality.

UBS has confirmed it is being investigated by US authorities into whether it helped Americans evade taxes through investments banned in the US.

The bank is cooperating with the authorities in these investigations, which come after UBS paid $780m in 2009 to settle a separate Justice Department tax-evasion probe.

UBS results for the full year were hit by more than $1bn to settle past scandals, including a $300m payment in the second quarter to settle charges it helped wealthy German clients evade tax.

The bank was also one of six banks fined by UK and US regulators over their traders' attempted manipulation of foreign exchange rates, paying 774m Swiss francs in total.

UBS will disclose the identities of about 4,450 of its American clients with offshore bank accounts containing as much as $18 billion in its settlement with the US Government over allegations of tax evasion.

This is an unprecedented amount of information on taxpayers who’ve evaded their tax obligations, according to Doug Shulman, the Commissioner of the Internal Revenue Service (IRS).

UBS’s American customers have until September 23 to confess to the IRS about offshore bank accounts to receive more lenient treatment.

There’s still time for you to come in and get right with your Government, Commissioner Shulman said.

UBS has been accused of being "systematic" in its support of tax-evading customers, with prosecutors describing the laundering of proceeds from tax fraud as being done on an "industrial" scale.

The bank's alleged involvement in tax evasion has led to investigations and fines in several countries, including the US and Germany.

UBS has previously rejected a €1.1bn settlement offer and claims that the conviction is not supported by concrete evidence, but instead is based on unfounded allegations.

The bank's statement claims that no evidence was provided that any French client was solicited on French soil to open an account in Switzerland.

Belgium is also investigating UBS for tax fraud.

Here are some key dates in the UBS tax evasion controversy: