Foreign Banks/Wealthy Americans Cheating IRS

[WhatsHisNuts]

I think it's funny how we worry about whether or not some fat, partially handicapped, ghetto dweller can actually get a job or not, but we don't hear much about the rich crooks that shelter money from the IRS. Who's the bigger threat?

Fugitive: Foreign Banks Cheating IRS
Friday, Jul. 18, 2008 By AP/DESMOND BUTLER

A man wanted by Liechtenstein for leaking secret bank records that identified millionaire tax cheats told lawmakers on Thursday about elaborate sham transactions and code words used to outsmart the IRS.

A Senate panel heard Henrich Kieber's testimony by videotape; lawmakers said he is living under a new name in an undisclosed witness protection program. Kieber appeared only as a silhouette against a white screen, with eyeglasses and a balding head apparent. It was the first time he has spoken publicly about his role in exposing tax shelters Kieber says were used by Liechtenstein's LGT group, lawmakers said.

In the videotaped interview with congressional investigators, he described ruses that he saw while working at the bank, which he said were used to cover the tracks of money moved into accounts in Liechtenstein.

The video was played at a hearing in which the Senate Homeland Security and Governmental Affairs investigations subcommittee highlighted offshore tax abuses that lawmakers believe cost the government about $100 billion a year.

Mark Branson, chief financial officer of UBS' global wealth management, said at the hearing that the bank regrets "any compliance failures that may have occurred" and will now provide banking or security services to U.S. citizens only through companies licensed in the United States. He said the bank also is working with authorities to identify clients involved in U.S. tax fraud.

LGT refused to send a representative but said in a statement that it had cooperated by sending a senior official for a lengthy interview and providing all the documents requested by the panel.

Both LGT and UBS came under withering criticism from the lawmakers. "Tax havens are engaged in economic warfare against the United States and honest, hardworking American taxpayers," said Sen. Carl Levin, D-Mich., chairman of the subcommittee. He said the two banks "relied on secrecy and deception to hide, not just the tax avoidance schemes of their clients but the actions they themselves took to facilitate U.S. tax evasion."

A federal judge ruled this month that the Internal Revenue Service could serve legal papers to UBS in an expanding probe of taxpayers who may have used overseas accounts to hide assets and avoid taxes. UBS has said it is cooperating with Swiss and American investigations and will disclose records involving U.S. clients who might have broken tax laws. It also has banned its Swiss bankers from traveling to the United States. The IRS also has asked the Swiss government to help in its investigation.

Finance Ministry spokesman Jean-Michel Treyvaud said that Swiss tax authorities received the IRS' official request for "administrative assistance" on Thursday.

He said the request would now be analyzed, but he said nothing further.

 

[SixFive]

the bigger threat is obviously the people who don't work and burden the system. Is this a trick question??

I'm all for prosecuting losers who don't pay their taxes too. Funny how that's put so many behind bars that couldn't be caught for other crimes.

 

[WhatsHisNuts]

Clint: There are lots of lazy people taking advantage of the welfare system. They ciphon thousands off the government program, but they play the game as it is laid out. The rich guys hiding money in these foreign banks are doing more damage IMO because they are keeping money out of the system that should be there, and we are talking about lots of money.

When I think about the individuals involved, I think about the scale of deceit. We like to make judgements about the people that say that can't find work, but it's mostly heresay. On the otherside, we have people hiding money from the IRS, but it doesn't seem to be considered the burden on society we associate to the Welfare recipients.

 

[StevieD]

Would the rish crooks be willing to change places with the Welfare Cheats? I don't think so.

 

[Nosigar]

Would the rish crooks be willing to change places with the Welfare Cheats? I don't think so.

Another idiotic comment from our resident old fart commie.

:nono: :shrug:

 

[Skulnik]

They should Release the names.

 

[IntenseOperator]

Another idiotic comment from our resident old fart commie.

:nono: :shrug:

:mj07:

 

[RAYMOND]

saw a report where obama on :nono: that list:scared

 

[StevieD]

Another idiotic comment from our resident old fart commie.

:nono: :shrug:

I love the way you debate an issue. In fact in confirms my belief that you are a masterdebator.

You obviously see nothing wrong with the rich taking all they can get. I got news for you. That doesn't make you an American.