Bank La Roche & Co AG has reached a solution in the tax conflict with the US. The bank has signed a Non-Prosecution Agreement (NPA) with the US Department of Justice (DoJ) and will pay a penalty of $9.296m. La Roche is a Category 2 bank under the US Tax Program.
According to the DoJ publication ‘in 51 instances, La Roche maintained accounts for U.S. taxpayers as beneficial owners of accounts held by non-U.S. corporations, foundations or other entities, some of which were sham entities, that concealed the beneficial ownership of the U.S. taxpayers. These entities included Liechtenstein foundations, two of which were established or administered by a Liechtenstein trust company, whose manager and director had a long-standing personal relationship with La Roche’.
The DoJ also reports that some clients of the bank filed false and fraudulent US Individual Income Tax Returns (IRS Forms 1040), and some also failed to report their undeclared accounts on Reports of Foreign Bank and Financial Accounts (FBARs).
As part of the US Tax Program, La Roche provided information concerning 10 US client accounts and also provided a list of the names and functions of individuals who structured, operated or supervised the cross-border business at the bank.
In the bank’s NPA we learn that since August, 2008, La Roche maintained 201 US-related accounts with a maximum aggregate value of c.a. $193.9m. La Roche will pay a penalty of $9.296m.