U.S. Using Subpoena Power For Suspected Swiss Bank Tax Cheats

U.S. prosecutors have begun to use subpoenas to compel suspected Swiss Bank tax cheats (not the banks themselves) to turn over their bank account details dating back to 2003. Courts in the U.S. have recently split over the legality - under the 4th Amendment - of this tactic. At issue is whether the account information requested falls within the "required records" exception for activity that is regulated and for a "public" nature. In the meantime those that have been served subpoenas face the daunting prospect of facing civil or criminal contempt fines - or even jail time - for refusing to cooperate with prosecutors.

See Lynnley Browning, "New U.S. Tactic For Suspected Swiss Bank Tax Cheats," Reuters (Dec. 28, 2011).

Posted by Andrew Hodes, Associate Editor, Wealth Strategies Journal.