Showing posts with label IRS. Show all posts
Showing posts with label IRS. Show all posts

Tuesday, May 20, 2014

Swiss Bank Pleads Guilty to Felony Conspiracy with American Tax Dodgers

Syndicated news with introduction by Nomad 

Swiss banking giant Credit Suisse has admitted that it conspired to help some US clients avoid paying taxes. It has agreed to pay over $2.5 billion and to cooperate with investigations. 
This would make the Swiss company the largest bank in 20 years to plead guilty to criminal charges.
  

As much as I think this is a good- and long overdue- step, imposing a fine on Swiss banks for helping Americans hide their wealth is a little like punishing dogs for peeing on fire hydrants. It's what they do. There's nothing very "brazen" about either case. 

Perhaps the only surprising aspect of this news is that the US government found the wherewithal to actually do anything about it. As Forbes describes the news, the IRS took on Swiss banking and it won. According to that article, IRS is the big winner in this plea bargain arrangement.
Plus, the IRS earns dividends in the form of account holders applying for amnesty. And for the IRS, it isn’t just Switzerland, but everywhere now that FATCA has expanded U.S. tentacles almost worldwide. Attorney General Eric Holder wins big too, getting the benefit of a guilty plea. He can’t be accused of letting another big bank off the hook for being too big to fail.
The U.S. Treasury and New York State both make out well. Credit Suisse will pay nearly $1.8 billion to the Justice Department, $100 to the Federal Reserve, and a whopping $715 million to New York’s Department of Financial Services.
With FATCA approaching its launching date, some would see this in a little less cheery light. The US, they'd say, is simply attempting to assert its control over all international banks. 
Amid all this back slapping, and at a time when Putin is threatening to renew a Cold War, what is left unsaid is that the long-term consequences may be hard to calculate.


Credit Suisse guilty on US felony charge, pays $2.6 bn (via AFP)
Credit Suisse pleaded guilty and was fined $2.6 billion for helping Americans avoid taxes, the first time in 20 years a major bank has been punished on US criminal charges. US authorities said the "brazen" Swiss bank, one of the world's largest wealth…

Thursday, May 23, 2013

IRS Scandal: Why Should Tea Party Groups Have Any Tax Exemptions?

The rules for tax exemptions for organizations are not well-understood. They tend to be complicated and, even then not well-enforced. Still, it is fair to ask, when it comes to tax exemption, what makes the Tea Party organizations so special?


It has been really hard to get my head around the recent “scandals” that have “plagued” Obama’s second term. Quotation marks are mandatory in this case since, as far as I can see, the scandals seem to be an imaginative invention manufactured by the Republican Congress and a mainstream media.
(To be sure, there are questions that should be asked to the president about, for example, the handling of such things as Gitmo, the legality of drones, press freedom and other things.)

The investigation of the Benghazi tragedy has dragged along becoming less and less productive and more and more embarrassing for the investigators. All of the rocks have been squeezed and much to their dismay, GOP congressmen have found not even a drop of blood.

However, the most ridiculous of these so-called scandals has been the accusation of the IRS targeting Tea Party tax-exempt organizations. (Daily Kos has called the whole affair a "Scandalnavian nothing-burger.")

Targeting Flaunters

As long-time readers of this blog may know, we have examined the possible violations of both Tea Party and Christian right-wing 501(c)3 and 501(c)4 organizations in the past. The abuse of their tax-exempt status has been openly flaunted. It was clear that something had to be done.

In the run-up to the election, religious organizations, in particular, seem to challenge the administration to take action. A careful reading of the tax codes demonstrates beyond much doubt that these organizations should have come under some kind of scrutiny at least.

And yet, somehow we find the entire argument re-framed as "targeting" and "profiling." Is it really wrong to target those who publicly flaunt the law?

When Leona ("Queen of Mean") Hemsley went on 60 minutes and proclaimed We don't pay taxesOnly the little people pay taxes” would anybody have accused the IRS of targeting super-wealthy hoteliers?
No.
Most people felt she deserved what she got for thinking she was somehow untouchable. Today the Republican party has become the chosen defenders of anybody who would defy  the IRS and the Obama administration, in general.