Switzerland Weighs Deal in Tax Cases
BY LYNNLEY BROWNING
The Swiss government is considering a proposal to disclose bank client names and pay a multibillion-dollar fine to the United States to help resolve a long-running dispute between the two countries over the handling of tax-evasion cases, American and Swiss sources briefed on the matter said on Tuesday.
The fine, which could reach at least $7 billion to $10 billion according to these people, could be paid in part by the Swiss government, which would then seek reimbursement from the banks.
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The possibility of an agreement is a turning point in a deepening conflict between Switzerland and the United States over the matter.
American prosecutors have been conducting criminal investigations of about a dozen Swiss and Swiss-style banks involving offshore private banking services that allowed at least tens of thousands of wealthy Americans to evade federal taxes. The Swiss government, which has long prized the secrecy of its banking system, now appears to be willing to cooperate with authorities, one person said.
The Swiss banks that have been the targets of investigations include Credit Suisse, which disclosed in July 2011 that it had received a letter saying it was under a grand jury investigation; the Zurich-based Julius Bär; two cantonal, or regional, banks; the Swiss operations of HSBC Holdings; and three Israeli banks, Hapoalim, Mizrahi-Tefahot Bank and Bank Leumi.
Members of the top echelon of the Swiss government known as the Federal Council are expected to discuss the matter as early as Wednesday, according to people briefed on the talks. These people asked to be unidentified because the discussions were continuing.
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