A recent phenomenon has occurred. In the safety deposit rooms of Swiss banks, what used to be a few locked deposit boxes are now stacks and stacks. Swiss banks have lost banking customers, but have gained safety deposit customers.
These changes are due to the new reporting requirements thrown at the Swiss Banks. It seems like the new disclosure laws have turned everything upside down, and unfortunately people panicked. We've seen how this is affecting Swiss Bankers, and we know that it is possible to help their clients --- making all of their lives easier and more prosperous.
Swiss Bank account holder myths
The assumption is that all Swiss Bank account holders are criminals; that they opened secret accounts to avoid paying taxes. In reality, they are people who have valid businesses and professions with legitimate reason to have their money in these banks. They live and work in Europe; the physical location is convenient and there is an ease of wiring money.
When did having money become a crime?
Tax Professionals should be advocates for their clients
We want to fight for our clients, and are willing to take the IRS head on. We've seen too many tax professionals that are selfishly over cautious -- they want a sure thing that won't be too risky for them. They will make their clients feel bad for not knowing the law ("Why didn't you just report your account?"), or will use fear tactics to scare their clients into doing what they want ("If you don't listen to us, the IRS will take 50% of your account, or you can go to jail"). They take the easy way out instead of challenging the IRS.
We’ve seen the havoc that the US has created with these new reporting requirements – they are literally forcing financial institutions around the world to share their customers' information. Right now, there is no reporting requirement on cash, but who knows if or when that will change? Having the United States knock on your banks' doors and demand to know who has safety deposit boxes is a real possibility in the future.
People that have cashed out their accounts can be converted back into real clients! They want to keep their money in Europe, they have no intention of taking their money and running away. They are often dual citizens, and don't want to give up their European citizenship. Getting them current with the reporting requirements is the first step in having them give up that safety deposit box and putting their money back into an account that can grow.