Prestigious Swiss Private Bank Wegelin withdraws from U.S. market

Prestigious Swiss Private Bank Wegelin withdraws from U.S. market

25.08.2009

The St. Gallen financial institution is planning to withdraw from the American capital market. Partner Konrad Hummler criticized U.S. President Barack Obama sharply.

The planned tightening of the QI regime (U.S. withholding tax) by the U.S. government and the extent of the estate tax obligation meant a considerable legal uncertainty, the bank said on Tuesday.

The condition is untenable, is Konrad Hummler, Managing Partner of Private Bank, quoted in the statement. The government of the once most vibrant market economy, obviously know their own Achilles heel, and not worrying committing errors.

Unreasonable legal risks

The business model of Transgression asset, at least in the U.S. relates to persons, should be revised. Obama's government was planning not only all the tax loopholes against Americans to fill it. Rather, a significant expansion of the tax on non-Americans in the pipeline, writes the private bank.

First and foremost, the revision of the "Qualified Intermediary" leads - Agreement to undue legal risks for the Swiss banks. You would have to function as an arm of the U.S. tax authority will be able to see who was taxable in the United States. That is, given the almost boundless, totally vague definition of effective taxation is an impossible task.

Risk is too great

In the future, would not only American citizens but also foreigners about the U.S. asked to pay inheritance tax, writes Wegelin & Co. The only requirement is an American value of Scripture in the depot. The danger of an innocent Fehldeklaration by banks to the IRS, would be too large.

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