Some 7,500 wealthy Americans turned over information about
hidden overseas assets, including some valued at more than $ 100 million,
ahead of a tax amnesty program’s deadline, the top US tax collector said. Doug
Shulman, commissioner of the Internal Revenue Service, said his agency would
expand its crackdown on offshore tax evasion and will open new criminal
investigation offices in Beijing, Panama and Sydney, Australia. The amnesty
plan revealed accounts in 70 countries.
Under the amnesty program that began in September, tax
cheats can declare offshore accounts and income, pay reduced fines and, in
general, get immunity from criminal prosecution. The program turned up
undeclared offshore accounts ranging from $ 10,000 to more than $ 100 million.
At the heart of the US offshore tax effort is the government’s investigation
of UBS AG (UBSN.VX). The giant Swiss bank earlier this year settled a criminal
probe by paying $ 780 million and admitting it helped US citizens evade taxes.
In August, the bank agreed to turn over 4,450 names of clients with
undisclosed offshore accounts to end a related civil lawsuit.
Senator Carl Levin, a Democrat and chairman of the Senate
Permanent Subcommittee on Investigations, has estimated the US loses $ 100
billion annually from international tax evasion. He questioned how many of the
individuals came forward without nudging from banks.
(Source : www.financialexpress.com, 20-10-2009)
