Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

UBS flips

February 19, 2009

Swiss bank UBS yesterday entered a "deferred prosecution agreement" on charges of assisting wealthy Americans avoid taxes via Swiss bank accounts. UBS will pay a $780 million fine.

This makes an otherwise very puzzling sentencing agreement from last April make more sense. California billionaire Igor Olenicoff had admitted to evading taxes of $52 million, and was set to receive an astonishingly light sentence of probation and a $3,500 fine. The Olenicoff plea led to a guilty plea by UBS banker Bradley Birkenfeld, and now to a huge fine by UBS, names of more potential tax evaders, and cooperation in going after them.

A lot of UBS customers presumably are getting very familiar with their lawyers.

The TaxProf has a comprehensive roundup.

Tags: Birkenfeld.Olenicoff.tax crime.UBS.