The Swiss UBS is increasingly pressed for explanations as the German tax authoratives continue to hunt tax-evaders. The investigators have evidence from the UBS CD’s they bought. These should prove that Swiss banks help tax-evaders to hide their fortunes in the Far East. A source from inside around the Finance Ministry in Düsseldorf tells FTD:”For the first time we have a paper trail to Singapore.”
Comment: (The formulation is obscure in German as well)
One should note that it is the tax-authorities in the state of Nordrhein-Westphalen – and not the German state! This might lead to some revision of Wolfgang Schäubles patronising attitude towards ”private”, state initiative. Many would like to wipe that smug sneer of his face: If the allegations hold water, it would be a criticism of the inter-governmental agreement – and show Swiss bad faith.
For Nordrhien-Westphalen’s Finance Minister Norbert Walter-Borjans this is a slam dunk against UBS AG (NYSE:UBS). The SPD politician had warned the federal government against giving investors time until the end of the year to transfer their capital out of Switzerland.
The Swiss finance institutes reject vociferously the accusations that the banks make these arrangements for their customers. UBS AG (NYSE:UBS) does”in no way aid nor abet tax-evasion activities!” – So the bank says in an official statement on Wednesday. There has since the agreement with Germany”not was an increase in funds transfers to other regions.”
Comment: “I did not have sex with that woman!” But there is a video:
The German investigators are now digging into the Singapore-connection. The UBS AG (NYSE:UBS) material is supposedly so excellent, that interest is focussed on the bank and the German tax evaders was”collateral damage” according to an ”insider”. The investigators is supposed to be in the possesion of videos where”senior officers” give instructions in how German costumers can invest their money with UBS in a”tax optimal way” – i.e. hide them from the IRS.
Musing: One suspects that the German Finance Minister might pass his displeasure on – to the Swiss.