(TheRedAlertNews.com) – In a confession showing how the wealthy avoid paying taxes with the help of foreign organizations, a Swiss bank has admitted a conspiracy with American citizens and other persons to conceal more than $5.6 billion in taxable income from the Internal Revenue Service of the United States.
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The bank in question, Banque Pictet, is described as a prominent Swiss financial institution. It is a sector of the Pictet Group, which has been operational for 218 years, CNBC reports.
The uncovering of the financial conspiracy was announced on Monday by the United States Justice Department.
As a consequence of its actions, the bank has agreed to a settlement, requiring it to pay the IRS approximately $122.9 million, including restitution and penalties.
From 2008 to 2014, Banque Pictet managed 1,637 accounts for American clients. According to the Department of Justice’s findings, these clients collectively evaded about $50.6 million in US taxes.
The accounts involved held over $5.6 billion, a significant portion of the nearly $20 billion in total assets from US taxpayers that the bank handled during this time.
Under the terms of the agreement, the Justice Department will postpone prosecution for three years, provided the bank adheres to the terms of the deal.
After this period, a criminal conspiracy charge to defraud the IRS will be dismissed.
Additionally, Banque Pictet has committed to aiding ongoing investigations into undisclosed bank accounts.
“Rooting out financial malfeasance remains a priority for this Office. We encourage companies and financial institutions to come to us to report wrongdoing before we come to you,” said Damian Williams, U.S. Attorney for the Southern District of New York.
In its response, the Pictet Group acknowledged the agreement, stating it resulted from their “extensive cooperation with the US authorities, in full compliance with Swiss law.”
“Pictet is pleased to have resolved this matter and will continue to take steps to ensure its clients meet their tax obligations,” the company added.
The Pictet Group facilitated tax evasion for its US clients by creating, managing, and concealing undisclosed accounts.
To keep these accounts hidden, the bank employed various methods. It retained clients’ account-related mail in-house, preventing it from reaching clients in the US and thus escaping notice from US authorities.
It also set up and managed offshore entities lacking any business purpose.
