5000 German clients of Swiss banks are under investigation

German and French authorities raid Swiss banking majors

German and French tax authorities have searched the homes of wealthy clients and the offices of major Swiss banks UBS and Credit Suisse in an ongoing inquiry into tax evasion and money-laundering.

­German police in Bochum and Duesseldorf raided the homes of Credit Suisse bank customers, suspected of evading taxes. Currently about 5000 German clients of Swiss banks are under investigation over Bermuda-based life insurance products used by some wealthy clients to hide money. Last year Credit Suisse paid €150 million ($183.83 million) to German tax authorities to settle an inquiry over allegations the bank and its employees helped Germans dodge tax.

In France detectives raided the offices of UBS in three major cities: Lyon, Bordeaux, and Strasbourg. The move came as French President Francois Hollande announced plans to increase taxes on businesses and the wealthiest households to reduce the budget deficit.

In 2009 US and Swiss authorities struck a deal, forcing UBS to pay a fine and release the names of thousands of American clients, suspected of tax evasion. US authorities are still probing Swiss banks such as Credit Suisse and Julius Baer over tax offences.

Swiss banks are known for maintaining a high standard of secrecy to protect clients since 1934, when criminal penalties were imposed for revealing a client's identity. It made Switzerland a safe haven for wealthy people around the world to stash their fortunes. However, the financial crisis forced European as well as US authorities to focus on tax evasion in order to bring money back home.

http://rt.com/business/news/swiss-banks-tax-raid-003/

Clients of Swiss Bank Raided in Tax Probe

BERLIN—German tax inspectors in recent weeks have been raiding the homes of Credit Suisse Group AG clients suspected of evading taxes, according to bank and German government officials.

The investigation is centering on about 5,000 clients who between 2005 and 2009 allegedly bought insurance policies at a Bermuda-based subsidiary of the Swiss bank.

The policies were sold to clients as a way of earning tax-free interest on savings, people familiar with the investigation said. A Credit Suisse spokesman said in a statement the bank has told clients who bought the policies to talk to their tax advisers. He added that Credit Suisse told its clients they were responsible for determining their tax obligations when they bought the products, which the spokesman said were legal in Switzerland.
http://online.wsj.com/article/SB10001424052702303644004577520802968264844.html?mod=googlenews_wsj

France, Germany raid Swiss banks, clients on tax

German tax authorities have launched raids into Credit Suisse clients and French officials searched the homes of UBS employees, part of crackdowns on foreigners suspected of evading taxes through the two largest Swiss banks.

Switzerland’s strict banking secrecy rules, which have helped build a $2-trillion offshore financial sector, have infuriated cash-strapped governments elsewhere as they try to stop tax evasion by wealthy citizens.
http://www.theglobeandmail.com/report-on-business/international-business/european-business/france-germany-raid-swiss-banks-clients-on-tax/article4405441/