Zurich Bank Under US Investigation for Tax Evasion

Rahn & Bodmer Co. a Zurich Private Bank, Under U.S. investigation for aiding in American Tax Evasion

One of the oldest private banks in Zurich, Rahn & Bodmer Co., has been deemed by the U.S. Department of Justice a category-one Swiss bank, a part of the group of banks which is under U.S. investigation for failing to report the taxable assets of US taxpayers. Under FATCA legislation enacted in 2010 as part of the HIRE act, foreign banks are now required to report their American Clients to the IRS or risk substantial penalties and fines.

According to Rahn & Bodmer Co. partner, Christian Rahn, the bank stopped dealing with untaxed U.S. funds in 2008, and has advised American clients to take part in the U.S, offshore voluntary disclosure program (“OVDP”).

Other banks under investigation include some of the largest names in Swiss banking including Credit Suisse Group AG and Julius Baer Group.  Last year, Switzerland’s oldest bank, Wegelin & Co., was indicted and was forced to pay $57.8 million dollars in fines after admitting it had aided Americans in evading taxes.

In 2009, UBS, Switzerland’s largest bank, reached an agreement with the U.S. Department of Justice and paid a $780 million fine after admitting to aiding American’s to evade U.S. taxes.

Essentially FATCA puts both US citizens and foreign banks on the hook for the reporting of foreign accounts. While initially slow to comply, recent Justice Department enforcement actions have caused foreign banks to step up and generated literally billions of dollars of revenue for the IRS.

With the odds of being caught by foreign bank reporting rising every month, high net worth individuals with untaxed foreign holdings are now flocking to programs like the IRS’ OVDP (Offshore Voluntary Disclosure Program) to declare assets legally and pay greatly reduced back taxes and fines.

For individuals with large offshore asset profiles, the team at Christopher Byrne PLLC can bring you into compliance while protecting your assets to the maximum degree possible.

Call us today to see how you can get on the road to compliance.