The United States and Switzerland have announced a deal to end the long-running tax evasion dispute that has embroiled the Swiss banking industry for the past several years. A DOJ press release announcing the deal is available here. Under the terms of the program, participating Swiss banks will be required to:
- Agree to pay substantial penalties
- Make a complete disclosure of their cross-border activities
- Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest
- Cooperate in treaty requests for account information
- Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed
- Agree to close accounts of account holders who fail to come into compliance with U.S. reporting obligations
Banks meeting all of the above requirements will be eligible for non-prosecution agreements. Banks currently under criminal investigation related to their Swiss banking activities, and all individuals, are expressly excluded from the program.