DOJ Probes Credit Suisse Israel Office for Tax Violations

The Justice Department has recently notified Credit Suisse that it is investigating the bank to determine whether employees in the bank’s Israel office helped dual Israeli and U.S. citizens conceal their U.S. status to evade American taxes. The bank is reportedly conducting its own internal investigation as a result of the DOJ investigation and has put five employees from their Israel desk on leave. The newly implemented U.S. Foreign Account Tax Compliance Act requires banks to automatically notify the IRS of information about clients who are identified as American.

The new probe comes roughly two years after Credit Suisse pleaded guilty in the U.S. to conspiring to help American clients evade taxes. The Justice Department’s examination is reportedly focused on the period leading up to Credit Suisse’s 2014 guilty plea and the period following it.

The U.S. has been cracking down on Swiss banks for harboring untaxed American assets for several years. The Justice Department recently completed a self-reporting program for dozens of Swiss banks that disclosed undeclared U.S. money on their books and paid related fines in exchange for agreements that the banks wouldn’t be criminally prosecuted.Other Swiss banks that, like Credit Suisse, came under Justice Department investigation for aiding U.S. tax evasion, were unable to join the program because they were already under criminal probes. A handful of Swiss banks remains under investigation.

This entry was posted on Thursday, September 8th, 2016 at 3:16 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.

| Next »