Swiss bank to expose US accounts

Swiss bank, Credit Suisse, has sent letters to some United States clients, saying their account details may be given to the Internal Revenue Service.The British Broadcasting Corporation reported that it was unclear how many US clients have been notified, but it covered accounts open from 2002 to the end of last year.Clients were told they could either agree to the handover of data to Swiss tax authorities who can send it to their US counterparts, or contest the process.The letter concerned a demand from the Swiss Federal Tax Administration."In connection with the IRS Treaty Request, the SFTA has issued an order directing Credit Suisse AG to submit responsive account information to the SFTA," Credit Suisse said in a statement to the BBC.This concerns a request for administrative assistance from the IRS to the SFTA under the 1996 double tax treaty between the two nations.In February, the US indicted four Credit Suisse bankers for helping taxpayers hide money in secret bank accounts.Switzerland is trying to reach a deal with the US that would cover its entire banking system.In recent years US authorities have pressured several global banks to help them fight tax evasion.The US Department of Justices initial target was Switzerlands other major bank, UBS.It threatened UBS with legal action if the Swiss bank failed to hand over the details of 4,450 US customers suspected of tax dodging.Following years of intense pressure from the US, in June last year the Swiss parliament passed legislation permitting the countrys banks to share customer details with the US authorities.
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