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Markus Stocker

Between information technology and environmental science with a flair for economics, the clarinet, and the world of soups and salads.

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After UBS, also Credit Suisse is becoming a target of the IRS, according to NZZ. The IRS argument: Some people like to move money into Swiss banks to bypass US tax authorities. I do believe, such practices are well known, so, IRS I’m afraid you are not discovering anything new. I wonder though, the scapegoat seems to be the Swiss law and in particular the Swiss bank secret, rather than people who exploit it. And so, the Swiss banks are, again, a target for (US) lawyers.

I’m not going to dwell on who is right, wrong, moral. Instead, I’m going to quote Daniel Mitchell, tax expert of Cato Institute in Washington. According to Michell, who refers to the Swiss law for the bank secret,

In the US, authorities don’t care about the law of other countries. [Die US-Behörden scheren sich hier nicht um die Gesetze eines anderen Landes.] (NZZ, my translation is not certified and may be inaccurate.)

Dear Mitchell, the practice is well known and has been applied all over the world in many different domains.