Credit Suisse and Julius Baer have set an ultimatum to their German clients to come clean to the German authorities on their tax return or the banks will take drastic measures.
Following the failure of the tax agreement between Switzerland and Germany, Credit Suisse and Julius Baer have decided to reinforce their "white money" strategy by asking their German clients to provide tax compliance for their accounts.
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Julius Baer told PBI that the bank recommends its clients "review their tax status with the assistance of local tax experts and to take appropriate steps to assure conformity with fiscal obligations". However, the bank says it is not in a position to give tax or legal advice.
"We are advising our German clients to look at their situation and to clean it up. In the eventuality that clients are not able to provide the right document, in a final stage, we will have to terminate this relationship," a spokesperson for Credit Suisse told PBI.
Similarly, Julius Baer said that the bank will "discuss the terms and conditions of the account relationship going forward under Julius Baer’s tax compliance framework" if clients fail to prove their accounts comply with tax reporting rules.
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