Swiss negotiator for UBS says American tax authorities may seek more information

Switzerland’s chief negotiator in the UBS AG tax case has said the United.States Internal Revenue Service may request names of American clients from other banks.

The move comes in the wake of the Swiss government agreeing to hand over UBS account details to the American authorities.

Michael Ambuehl, the chief negotiator for the Swiss foreign ministry, said, “It is possible that the IRS will ask for more data on U.S. customers at other Swiss banks.”

A disclosure similar in scope to the Aug. 19 agreement is “questionable” because UBS is the only Swiss bank to admit unlawful behaviour in its efforts to win rich U.S. clients, Ambuehl said.

The IRS plans to target more banks and law firms that help Americans hide assets, IRS Commissioner Douglas Shulman has announced. While Swiss banks manage approximately 27% of the world’s offshore wealth, tax evasion through offshore accounts robs the U.S. of $100 billion annually, according to the American tax authorities.

Under the arrangement UBS agreed to provide Swiss authorities with details of 4,450 accounts where “tax fraud or the like” is suspected. Switzerland has been granted a year to decide which data to pass on to the IRS. Swiss justice ministry spokesman Folco Galli.

has indicated legal appeals may delay the transfer beyond that time scale.