Tax aviation

Swiss bank boss 'regrets' tax ploy
February 26, 2014 8:07 PM
The boss of Swiss bank Credit Suisse has said he "deeply regrets" that some of its bankers violated US tax laws.

But Chief Executive Brady Dougan said in a statement to a US Senate committee that there was only "scattered evidence" of improper conduct.

A US Senate report alleged the bank had helped US clients hide billions of dollars from the US taxman.

Mr Dougan admitted some private bankers had helped Americans hide income and assets to illegally avoid US tax.

Deep regret

He said: "We deeply regret that - despite the industry-leading compliance measures we have put in place - before 2009, some Credit Suisse private bankers appear to have violated US law."

"The evidence showed that some Swiss-based private bankers went to great lengths to disguise their bad conduct from Credit Suisse executive management."

The report said that in 2006, Credit Suisse held 22,000 accounts from US customers worth 12bn Swiss francs ($13.5bn; £8.1bn).

Mr Dougan disputed some of the findings of the report, saying the subcommittee wrongly assumed every US client account held in Switzerland was hidden from the US government.

He said the bank was fighting lawsuits in Switzerland from clients trying to prevent it from giving information to the US authorities.

"These are not the actions of an institution flouting US law enforcement or hiding behind Swiss law," he said.

Stalled effort

Currently, the US Justice Department (DOJ) is investigating 14 Swiss banks over tax evasion - five years after UBS admitted to helping US clients hide money.

"It's five years later, and the sad truth is that the era of bank secrecy is not over," said Senator Carl Levin, a democrat from Michigan and chairman of the Senate committee that published the report.

"We have great concern that the battle to collect those unpaid taxes on hidden offshore assets seems stalled."

During the Senate hearing, US politicians lashed out at Credit Suisse executives both over the bank's behaviour and over the Swiss government's perceived obstructions into helping US authorities identify Americans who are evading tax.

"The whole idea that the Swiss government is cooperating with us is a joke," said Mr Levin.

He also scolded the DOJ for having only identified 238 client names from Credit Suisse out of 20,000 accounts.

"To collect those unpaid taxes and hold U.S. tax evaders accountable, the critical first step is to get their names," he said.

According to the report, after Credit Suisse started phasing out its tax evasion practices, the number of Swiss accounts held by US clients at Credit Suisse fell by 85%.

BBC © 2014

Ethnic cleansing' of CAR Muslims

'Ethnic cleansing' of CAR Muslims
Updated 17 minutes ago

Militias have been attacking Muslim civilians
International peacekeepers have failed to prevent the ethnic cleansing of Muslims in the Central African Republic, a human rights group says.

Militia attacks have led to a "Muslim exodus of historic proportions", according to a report by Amnesty International.

Aid groups have warned of a food crisis, as many of the shops and wholesalers were run by Muslims.

The UN's World Food Programme is due to start airlifting aid on Wednesday.

The roads are too dangerous to transport food without a military escort, WFP spokesman Alexis Masciarelli told the BBC.

This means it is being forced to take the more expensive option of flying food in from neighbouring Cameroon.

He said 82 tonnes of rice would arrive on Wednesday, with a further 1,800 tonnes of cereal to follow over the next month.

This is enough to feed 150,000 people but he said 1.25 million need food aid.

With traders and herders fleeing the country, aid organisations fear the food crisis in CAR will only get worse

French peacekeepers have been unable to halt the violence
According to the UN, 90% of the population are eating one meal a day.

France has sent 1,600 troops and African countries 5,500 to CAR to help combat a crisis which has lasted more than a year.

French Defence Minister Jean-Yves Le Drian is in Bangui to see the situation for himself.

On Tuesday, UN chief Ban Ki-moon warned that the country risked being divided into Muslim and Christian areas.

"Both Muslims and Christians have been murdered and forced to flee their homes," he said.

"The sectarian brutality is changing the country's demography. The de facto partition of the CAR is a distinct risk."

Muslims are being attacked after a mainly Muslim rebel force seized power last year and was accused of killing Christian civilians.

Its leader stepped down in January but instead of defusing the situation, Christian vigilante groups have been taking revenge on Muslims, forcing them to flee Bangui and other towns.

BBC © 2014