June 16, 2014 — Credit Suisse AG has pleaded guilty to criminal tax charges for its assistance, over a period of decades, to U.S. tax cheats filing false income tax returns with the IRS. The $2.6 billion settlement of the matter makes clear that the IRS has set a high priority on identifying and punishing those involved in international tax evasion.
Insider employees who discover their employer’s participation in tax evasion schemes are encouraged to notify the IRS Whistleblower Office established by the Tax Relief and Health Care Act of 2006. The Act permits informants to retain a percentage of 15 to 30 percent of the amount the IRS recovers as a result of their tip.
Bank Will Pay $2.6 Billion to Settle Criminal Tax Investigation
To resolve a years-long investigation, Credit Suisse has consented to pay $1.8 billion to the U.S. and $100 million to the Federal Reserve. In addition, the bank reportedly will pay $715 million to the New York State Department of Financial Services. The $2.6 billion settlement comes on top of the $196 million Credit Suisse paid earlier this year to the Securities and Exchange Commission (SEC) to resolve charges that the bank had provided U.S. clients with prohibited cross-border brokerage services without first registering with the SEC.
Credit Suisse admitted that for decades leading up to 2009, it intentionally helped thousands of U.S. taxpayer clients to conceal assets and income from the IRS through the use of undeclared foreign accounts. Credit Suisse engaged in a wide array of wrongdoing, including the following:
- helping clients set up sham entities to hide accounts
- deceiving the IRS by claiming that the sham entities were the beneficial owners of the account assets
- failing to maintain and destroying account records
- hand-delivering cash to U.S. clients, and
- transferring client funds to help them escape reporting requirements for cash transactions.
As part of the resolution of the investigation, Credit Suisse also agreed to disclose its activities involving U.S. clients, to provide account information requested by treaty and to offer up information about participating banks that accepted funds when clients’ undisclosed Credit Suisse accounts were closed.
Insiders Collaborate with IRS About Employers’ Participation in Tax Evasion Schemes
A democracy works well only when everyone does their part — and that includes paying taxes. Before contacting the IRS to report schemes involving tax evasion, conscientious tipsters should ensure they understand how the process works. The qui tam lawyers with Waters & Kraus offer government collaborators the legal representation they deserve. Contact us by email or phone our whistleblower attorneys at 855.784.0268 to learn how we can work together to make certain that everyone pays their fair share.