Tuesday, May 07, 2013

UBS to get clients to orally confirm funds are reported to tax authorities

From the Wall St. Journal:
"UBS AG (UBS) has begun requiring prospective clients to guarantee funds moved into Swiss accounts from other countries have been reported to tax authorities, a move designed to stem the flow of undeclared money into Switzerland.

Such clients are required to orally confirm that the funds have been reported to the relevant tax authorities, which is noted in the client's paperwork."
We think that the changes might make a difference at the margin, but if people are going to lie to their tax authorities about their income, then they aren't going to find it that hard to tell fibs to a (possibly smirking) Swiss banker. The cartoon here sums up quite nicely:

Or, as the old saying goes: an oral contract isn't worth the paper it's printed on.

Hat tip: Best of Both Worlds.


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