TAX NEWS - June 2010

Switzerland Tax: US expects Switzerland to honour deal to divulge UBS clients suspected of tax evasion

WASHINGTON — The U.S. tax agency says it expects Switzerland to honour an agreement to divulge the names of thousands of UBS clients suspected of tax evasion.

The comments Tuesday by the Internal Revenue Service came as the Swiss parliament approved a treaty with Washington to provide U.S. authorities with the files on the suspected tax cheats.

Obstacles remain that could delay the deal for several months.

IRS spokesman Frank Keith says the United States is "prepared to use all available options, including the U.S. courts, should the present efforts fail."

A three-year battle between UBS and U.S. tax authorities culminated in revelations the bank helped American clients for years to hide millions of dollars in offshore accounts.