Julius Baer has been ordered by the Swiss government to hand over data on US clients that will be passed on to US tax authorities, while a long-running tax dispute between the two countries is on its way to being settled.
Julius Baer is, reportedly, working on providing the data, but has declined to comment on how many clients were involved or any such details. The data will be handed over under the terms of an existing Swiss-US double taxation treaty.
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Julius Baer is one of the many banks being targeted directly by US authorities for assisting Americans in evading taxes, following a US$780 million settlement with UBS in 2009. At the end of 2012, the number of Swiss banks under investigation by the US Department of Justice (DoJ) increased to 13, including Credit Suisse, Geneva private bank Pictet and Bank Frey.
On 28 May, the chairman of Credit Suisse, Urs Rohner, warned that a long-running tax dispute over hidden Swiss bank accounts with the US could "easily escalate and spill over to rivals" if matters are not settled.
Rohner said, "What looks to be a painful solution at first glance is better for everyone than none at all."
Earlier in April, UBS and Credit Suisse were named in a wide-spread investigation by The International Consortium of Investigative Journalists (ICIJ) into offshore tax evasion.
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By GlobalData
