Switzerland’s Federal Administrative Court has blocked the transfer of bank account data of a Julius Baer client to US authorities because the Internal Revenue Service (IRS) had made an insufficient request to Switzerland’s tax administration.
The court said that the IRS request abstractly described the alleged conduct of the bank’s clients and didn’t provide evidence of tax fraud.
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The court said that the IRS pieced together the information from the indictment in 2011 of two former Julius Baer private bankers, Daniela Casadei and Fabio Frazzetto.
Documents filed by the court indicated that at least 400 of the bank’s clients have now participated in so-called voluntary disclosure programs for US tax evaders.
The 34-page court ruling did not provide supporting documents and the information that is needed for Swiss to fulfil US demands under the accord.
The court ruling added that Swiss tax authorities unlawfully granted an IRS request for administrative assistance made under a double taxation agreement between the two countries.
Julius Baer declined to comment on the ruling.
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By GlobalDataOn 29 May 2013, Julius Baer has been ordered by Swiss government to hand over US client data to US tax authorities.
