UBS Swiss Bank Will Be Summoned For Snuggled Diamonds
UBS Swiss bank has been buying diamonds for wealthy American clients and has been smuggling the diamondsin a toothpaste tube, says UBS banker Bradley Birkenfeld. Instead of Americans having to buy diamonds from the U.S. and pay federal income taxes, they try and get it easy by importing the diamonds from Switzerland based bank UBS employees.
The IRS was informed to serve a ‘John Doe’ summons on the bank directing UBS to reveal the records of American taxpayers who have a UBS account in Switzerland in order to be hidden from the IRS.
According to the statement that Birkenfeld had given to the court, wealthy U.S. clients created UBS accounts with fake identities and even gave IRS false information writing that its the non-existent identity who is the owner of the offshore account. Birkenfeld’s court statement, the bank had an average of US $20 billion worth of possessions in ‘undeclared’ accounts for American taxpayers.
The law requirements of U.S. tax payers are to state all financial accounts in foreign countries if the total amount in the account goes beyond US $10,000. Failing to follow this law can result in a fine of up to fifty percent of the total amount in the account, once the violation is discovered.