IRS has 20 Swiss banks in sight: UBS

UBS urged parliament to approve an August treaty signed by the U.S. Treasury Department and Switzerland's executive Federal Council on improving cooperation in tax evasion matters.

“The risks are very considerable for the Swiss financial center and the economy as a whole if parliament were to withhold its approval,” UBS said in the letter, obtained Friday by The Associated Press. The bank confirmed its authenticity. The Swiss government is scrambling to salvage the treaty after a Swiss court ruled in January that parts of it were illegal. It has asked parliament to sign off on the deal, which would temper Switzerland's strict banking secrecy law to meet Washington's demands for greater access to files on suspected American tax cheats.

“Apart from UBS, many other Swiss banks were involved in cross-border business with American clients,” the Zurich-based bank said, referring to offshore accounts for wealthy U.S. customers.

“The IRS has obtained information on about 20 Swiss banks” as part of a recent amnesty program, UBS said. “It is quite possible that the IRS wants to obtain information on other customers of these banks. Refusal by Switzerland to meet its obligations under international law could send a signal that would escalate these cases.”

A spokesman for UBS declined to say which banks were involved.

UBS also warned that Switzerland risked ending up on a blacklist of uncooperative tax havens if lawmakers refused to bless the deal, which was reached after months of tense negotiations between Washington and Bern.

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