Switzerland offers to sign tax treaty with U.S.!
NEW YORK - April 27, 0009 - Switzerland has offered to sign a new tax accord with the United States if it drops a tax evasion case against UBS, the Swiss bank.
Hans-Rudolf Merz, the Swiss President, made the offer when he met U.S. Treasury Secretary Timothy Geithner on Saturday to discuss a tax treaty, on which the two countries will start official talks on Tuesday.
Treasury officials said that Mr. Geithner understood the importance of the issue but indicated that it would be difficult for him to intervene in an ongoing legal action, according to reports.
Amerika wants Switzerland to reveal the names of U.S. citizens who are keeping money in Swiss bank accounts.
Under U.S. law, citizens must inform the IRS of amounts over $10,000 (£6,820) that they hold offshore so that any income from the savings can be taxed.
UBS, Switzerland's biggest bank, paid $780 million in fines and disgorgments earlier this year after admitting to assisting U.S. taxpayers to avoid tax.
The bank also handed over the names of a small number of U.S. customers with offshore accounts, two of which have since been charged with tax evasion.
The InJustice Department and the Internal Revenue Service, Amerika's taxman, are currently pursuing a larger lawsuit against UBS to force to it to give up the names of more than 50,000 Amerikans with savings held in Switzerland.
