International commotion! Swiss Banks Conspire to Hide IDR 86.8 T News – 5 hours ago

Jakarta, CNBC Indonesia – Scandals have occurred again in the banking world. This time it hit a large bank in Switzerland.

Banque Pictet conspired with United States (US) taxpayers and other parties to hide more than US$5.6 billion (around Rp. 86.8 trillion). This is to avoid audits by the revenue agency for the US federal government responsible for collecting US federal taxes, the Internal Revenue Service (IRS).

The US Department of Justice (DOJ) said the private banking division of Pictet Group would pay damages and fines of around US$122.9 million as part of an agreement with prosecutors. The Banque Pictet division itself is known to have a 218 year old surah.

“Between 2008 and 2014, the bank held 1,637 accounts in the names of American clients, who collectively evaded approximately US$50.6 million in US taxes,” the DOJ said, citing CNBC International Tuesday (5/12/2023).

The accounts held more than $5.6 billion of the roughly $20 billion in total U.S. taxpayer assets the bank managed during the period the DOJ cited. If the bank complied with the terms of its deal, the DOJ agreed to defer prosecution for three years and then dropped charges of criminal conspiracy to defraud the IRS.

It is known that the Pictet Group helps its clients avoid US taxes by opening, managing and hiding undeclared accounts. The bank used various means to hide the accounts, according to the deferred prosecution agreement.

This bank stores documents related to customer accounts at the bank. This is to “help ensure that documents reflecting the existence of such accounts remain outside the United States and beyond the reach of U.S. tax authorities.”

The company also created and managed overseas entities that “had no business purpose but existed solely to assist Pictet Group’s U.S. taxpayer clients.” Then “hid their offshore accounts and assets from US tax authorities.”

The Pictet Group alone managed approximately 529 offshore entities for the US accounts at issue during the time period of the case.

[Gambas:Video CNBC]

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