Swiss Bank’s Case Full of Holes

The Department of Justice Tax Division charged Switzerland’s oldest bank, Rahn+Bodmer Co, with conspiring to help US account holders evade their US tax obligations, file false tax returns, and otherwise defraud the IRS.

The Swiss bank admitted in court that between 2004 and 2012 they held undeclared accounts on behalf of 340 US taxpayers, who collectively evaded approximately 16.4 million dollars in US taxes. The assets held by the bank for undeclared US account holders went from 391 million dollars in 2004 to 550 million dollars in 2007, its peak year for undeclared assets.

The bank has agreed to pay 22 million dollars in restitution, forfeiture and penalties and to fully cooperate with the IRS in order to bring the tax evaders to justice. If the bank abides by all the terms of the agreement, the government will seek to dismiss the charges after three years.

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