Firm name
July 2014

Swisspartners Group Entered Into NPA to Avoid Criminal Tax Prosecution But Must Pay $4.4 Million in Forfeiture and Restitution for Assisting U.S. Tax Evasion


Greetings!

To avoid prosecution for tax evasion and other alleged crimes, the Swisspartners Investment Network AG, a Swiss-based asset management firm, and three of its wholly-owned subsidiaries (collectively, the Swisspartners Group) entered into a non-prosecution agreement (NPA) with the U.S. Attorney's Office. Although many taxpayers have been entering the IRS Offshore Voluntary Disclosure Program (OVDP)for some taxpayers it is now too late as the Swisspartners Group has already disclosed to the U.S. Attorney's Office the names of 110 U.S. taxpayers who may have failed to file Foreign Bank Account Reports (FBARs) and/or been engaged in tax fraud.  

 

Although the Swisspartners Group avoided criminal prosecution for assisting U.S. taxpayers in opening and maintaining undeclared foreign bank accounts from about 2001 to 2011, it couldn't avoid paying large sums of money for its wrongdoing. Swisspartners Group agreed to pay $4.4 million in forfeiture and restitution. Of the $4.4 million, $3.5 million represents fees that Swisspartners Group earned by assisting U.S. taxpayers in opening and maintaining undeclared accounts, and $900,000 represents the approximate amount of unpaid taxes arising from the Swisspartners Group involvement in tax evasion.

There are several factors that led to the NPA between the U.S. Attorney's Office and Swisspartners Group: (1) beginning around May 2008, the Swisspartners Group voluntarily implemented remedial measures against offshore tax evasion; (2) without any pressure from the U.S. authorities or obligation under a criminal investigation or prosecution, the Swisspartners Group reported criminal conduct by its clients; (3) the Swisspartners Group produced 110 account files that identified U.S. taxpayers who evaded taxes; (4) the Swisspartners Group's willingness and ongoing cooperation with the U.S. authorities to combat tax evasion; and (5) the Swisspartners Group, when investigated by outside counsel, made true representations of the misconduct that was under investigation.

The Swisspartners Group admitted, as part of the NPA, that it knew certain U.S. taxpayers maintained undeclared foreign bank accounts with the intent to evade U.S. taxes. Swisspartners Group also admitted that it helped certain U.S. taxpayers conceal beneficial ownership of undeclared assets from the IRS by, among other things: (1) creating sham foundations or other sham entities that operated as the nominal account holders; (2) using non-U.S. nationals on accounts or insurance policies; (3) facilitating the transportation of large amounts of cash into the U.S. for the benefit of U.S. taxpayers; and (4) arranging large cash deposits in Swiss financial institutions for the benefit of U.S. taxpayers.  

Under the NPA, the Swisspartners Group must continue to cooperate with the U.S. tax authorities for at least three years from the date of the agreement; otherwise, the U.S. Attorney's Office may prosecute the Swisspartners Group.    

If you have any offshore bank accounts or other tax problems call the tax litigation attorneys at Brager Tax Law Group, A P.C.

  

 

Please click on the link below (or copy and paste into your web browser) and click on the subscribe button on the right. Receive weekly updates on the latest tax controversy news from across the nation and around the world.

 

 http://paper.li/TaxProblemEsq/1364586608

 

Picture of Dennis Brager
Dennis N. Brager, Esq.
 
Former IRS Senior Trial Attorney
Nationally Recognized California State Bar Certified Tax Specialist
dbrager@bragertaxlaw.com

310.208.6200
Upcoming Speeches & Webinars 
  
Dennis will be speaking at the following upcoming events.

"Big Changes to IRS Offshore Voluntary Disclosure Program"
11:30pm - 12: 30pm 
July 23, 2014

"Dialing for Dollars: The IRS Collection Process"
5:00pm - 6:30pm

August 5, 2014  

 

Orange County Bar Assocation Tax Law Section
"Changes to IRS Offshore Voluntary Disclosure Program"
12:00 pm 
September 11, 2014


In the News  

 

"FBAR Filing Date Approaching" 

Accounting Today

May 2014

 

"Brager Sponsors FBAR Contest"
Accounting Today

May 2014

 

 

Previous Events

Dennis' webinar, "What Happens Offshore, Stays Offshore - NOT" is available on the Brager Tax Law Group Website: 
Click here for the Recording
Click here for the PowerPoint

Dennis' webinar, "Innocent Spouse Relief: Fact or Fiction?" is available on the Brager Tax Law Group Website:
Click here for the Recording 
Click here for the PowerPoint




Recent Blog Posts   
 
May 2014

 

"Offshore Bahamian Vacation Comes to An End"

May 2014   
 Our Services

The Brager Tax Law Group is a tax litigation and tax controversy law firm, which represents clients with tax problems and tax disputes with the IRS, the California Franchise Tax Board (FTB), the State Board of Equalization (SBE) and the Employment Development Department (EDD). All of the firm's tax lawyers are former trial attorneys with the IRS. 

Mailing list
Like us on Facebook Follow us on Twitter View our profile on LinkedIn Visit our blog
Brager Tax Law Group
10880 Wilshire Boulevard
Suite 880
Los Angeles, California 90024
Tel: (310) 208-6200
Fax: (310) 478-8030