In the eyes of the Swiss, the reputation of the United States of America has for various reasons been in sharp decline, and America has been presenting itself to Switzerland less and less as an old friend, and more and more as an enemy. I want to remind our friends in Switzerland, as well as every American in Switzerland, that the US is a friend of Switzerland, and I want to tell you what the Swiss as friends must do.
The US and Switzerland are two of the worlds oldest democracies, and both share the founding principles of freedom and independence. At the time of the American revolution, Switzerland was surrounded by tyrannical monarchies, and its fierce independence and stubborn refusal to submit to these despots earned it the title of ‘Sister Republic’ to the United States of America.
How things can change. In 2010, the US Congress with FATCA decreed that every bank in the world must report to the IRS, or face severe consequences. This is nothing less than an act of war on the sovereignty of every nation. Switzerland must under no circumstances submit to these threats, and we must as friends tell America that they are out of line. Brute force has replaced enlightened thinking, and the language of threats and intimidation have become the norm of US foreign policy.
Swiss politicians talk of appeasing the Americans to preserve our friendship. Real friends however don’t allow themselves to be bullied or intimidated by their friends. America needs to be brought back to its senses, so that Switzerland and America can sort out their differences as equals. Switzerland must not allow itself to be bullied and treated as a vassal state.
This is why I wish to encourage every person in Switzerland who values real friendship between the US and Switzerland to sign the referendum to repeal FATCA in Switzerland.
The Swiss government recently agreed to enforce FATCA on every Swiss bank. They must report on accounts defined as belonging to ‘US persons’. The US government is however the only one who can decide who a ‘US person’ is, and Switzerland has already agreed to accept all future modifications to FATCA.
This is pure bullying against Switzerland, and were any other country to attempt similar legislation aimed at the US, it would be considered an act of war. The criminal actions of a few Swiss bankers are leading to the subjugation of the entire Swiss banking sector (not to mention other sections of the economy), and Swiss politicians have accepted this with hardly a word of protest.
The referendum to stop FATCA has been launched, and a core group of volunteers is fighting tooth and nail to get the necessary 50,000 signatures before the deadline. It’s a difficult struggle though.
The banks and the large parties are too afraid of the US to mount any resistance, and the average Swiss voter doesn’t yet see how FATCA will affect them personally. By the time they do, it will be too late.
This referendum is a small grass roots movement that needs your help.
Here’s what you can do:
– Go to www.stop-fatca.ch, download the referendum sheet (http://www.lldc.ch/wa_files/referendum_fatca.pdf), and get as many signatures as possible. If you can’t sign yourself (you must be Swiss to sign), find a friend who is willing to sign.
Then send the sheet to:
FATCA
Le Lobby des Citoyens
Rue du Conseil-Général 20
1205 Genève
Please try to send your letters before 16 December. The holiday season means that most communes will be closed, and it will be very difficult getting the signatures validated in time for the 16 January deadline. Every signature counts though, so keep them coming until the very end.
If every American in Switzerland could just get one or two signatures, we’d easily have enough signatures, and we would be making a giant leap towards killing FATCA for good.
– We need every volunteer who is willing to help us. We are working hard and setting up stands to inform people and to collect signatures. But we need help. If you have the time, and are willing to stand outside in the ever colder weather, we’d love to have your support. Send an email to: info@lldc.ch or call 022 807 08 32 to find out more.
– Contact your local representatives and political leaders and ask what they are doing about FATCA. The large Swiss parties have sold out the country to protect the interests of the large banks. They are hoping this law will pass unnoticed. We need to make some noise and stir things up.
FATCA is a steamroller coming down on the world economy, and Americans abroad are going to be this law’s first victims. We can choose to fight and stop FATCA in its tracks, and if we work together we will succeed.
Spread the word to as many people as possible, and good luck!
Richard
@Just Me: Thanks for link to SRF news story.
This week’s Economist has an article on the US-Swiss Programme. Here’s a relevant excerpt with the final sentence explaining its poor conceptual design, putting Swiss retail banks into a quandary with its USP customers resident in Switzerland:
“Some may have American clients without knowing it. A Brazilian who was born in America may not have informed his wealth manager that he is formally a dual citizen; if his account holds $50m, the bank could face a $25m penalty. It might even be liable for a client who held a green card at some point in the past ten years but did not tell the bank. The programme does not distinguish between banks that willingly catered to tax dodgers and those that inadvertently served them.”
http://www.economist.com/news/finance-and-economics/21591639-wealth-managers-are-paying-clients-sins-even-if-they-were-unaware
On a related topic, Federal Judge Jed Rakoff was interviewed at least three times by the Swiss media: Neue Zuercher Zeitung, Handelszeitung and Swissinfo.ch. His trip to Switzerland now appears to be a promotional tour for the “US Programme”. He dodged any and all questions regarding US tax havens such as Delaware under the motto: “Do as we say, not as we do.” Just another hypocrite.
That’s great news about the SVP! Also, the SVP Valais is trying to launch a cantonal referendum. This is good news, and another nail in the fatca coffin. And to whoever has been collecting signatures, send what you have in the next few days so we can get them validated before Christmas. But keep on collecting until the very end! The ball is rolling, and if we can keep momentum we can eventually kill FATCA.
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Be sure to read U.S. Citizen abroad new posting here…
http://isaacbrocksociety.ca/2013/12/14/most-swiss-banks-considering-ovdp-should-not-consider-wegelin-in-their-decision/
Not a lot new here, but it’s a pretty good overview.
FATCA just one tentacle of IRS’ Efforts to Uncover Noncompliant U.S. Taxpayers – the Swiss Non-Prosecution Program
“Regarding which category to file under, the DOJ replied: “Each eligible Swiss bank should carefully analyze whether it is a category 2, 3 or 4 bank. While it may appear more desirable for a bank to attempt to position itself as a category 3 or 4 bank to receive a non-target letter, no non-target letter will be issued to any bank as to which the Department has information of criminal culpability. If the Department learns of criminal conduct by the bank after a non-target letter has been issued, the bank is not protected from prosecution for that conduct. If the bank has hidden or misrepresented its activities to obtain a non-target letter, it is exposed to increased criminal liability.”
Category 2 Banks against which the DoJ has not initiated a criminal investigation but have reasons to believe that that they have violated US tax law in their dealings with clients are subject to fines of on a flat-rate basis. Set scale of fine rates (%) applied to the untaxed US assets of the bank in question:
– Existing accounts on 01.08.2008: 20%
– New accounts opened between 01.08.2008 and 28.02.2009: 30%
– New accounts after 28.02.2009: 50%
Category 2 banks must delivery of information on cross-border business with US clients, name and function of the employees and third parties concerned, anonymised data on terminated client relationships including statistics as to where the accounts re-domiciled.
Category 3 banks have no reason to believe that they have violated US tax law in their dealings with clients and that can have this demonstrated by an independent third party. A category 3 bank must provide to the IRS the data on its total US assets under management and confirmation of an effective compliance programme in force.
Category 4 banks are a local business in accordance with the FATCA definition…”
“…SwissInfo reported that Migros Bank selected Program Category 2 because “370 of its 825,000 clients, mostly Swiss citizens residing temporarily in the US or clients with dual nationality”, met the criteria of US taxpayer. Valiant told SwissInfo that “an internal review showed it had never actively sought US clients or visited Americans to drum up business. The bank said less than 0.1% of its clients were American.”
http://profwilliambyrnes.com/2013/12/13/fatca-just-one-tentacle-of-irs-efforts-to-uncover-noncompliant-u-s-taxpayers-the-swiss-non-prosecution-program/
@bubblebustin, the Swiss press writes that Banks which entered category 2 will be moved to category 3 after the US realizes that their customers are compliant.
Is this a false promise to lure Banks into the wrong category?
@SwissPinoy
Might be a moot point as category 2 banks will be playing whack-a-mole for years to come, don’t you think?
@SwissPinoy, All
“……Is this a false promise to lure Banks into the wrong category?”
For some absurd reason the term “Bait and Switch” comes to mind.
Now if I could only recall where I heard that once before! 🙄
A term to describe the “US Programme” might be absolution:
Wiki:
“Absolution is a traditional theological term for the forgiveness experienced in the Sacrament of Penance. … Absolution is an integral part of the Sacrament of Penance, in Roman Catholicism. The penitent makes a sacramental confession of all mortal sins to a priest and prays an act of contrition. The priest then assigns a penance and imparts absolution in the name of the Trinity, on behalf of Christ Himself, using a fixed sacramental formula.”
Banks in Switzerland, including retail banks, have been ordered to journey to the DoJ’s high-priestess, Kathryn Keneally, Asst Attorney General, to apply for forgiveness of sins, whether committed or not, and pay a penance in the form of a heavy fine. Unlike a Catholic priest who is sworn to secrecy, the DoJ high priestess can then communicate how many and which banks asked for absolution, boosting her reputation as she climbs the ladder to Inquisitor and then possibly to Grand Inquisitor over all banks in the world.
It is unfortunate that she is the caricature of a pig:
http://www.mainjustice.com/2012/09/28/tax-division-back-to-full-force-as-detail-program-ends/
@Innocente
This is probably what all those bright people in the IRS and DOJ fantasize about all day! 😈
http://youtu.be/qdFLPn30dvQ
Kinda reminds me of the good ol’ days in college. 😳
DARN! Why didn’t that video get embedded, is it wordpress or did I screw it up again?
Anyway I guess all the Swiss banks are in the process of “asuming the position” 😯
I think that a few of the Swiss banks, mainly the larger ones, have behaved in the past pretty much like John Belushi.
I’m just waiting for the “ZIT” to pop! 😛
@Uncle Tell:
Thanks for the appropriate video links!
I’m thinking that if given a choice between dealing with the DoJ piglet extortionist and the Camorra, I might go for the latter. At least you get poinsettias from the Camorra at Christmas:
http://www.csmonitor.com/World/Latest-News-Wires/2013/1216/Poinsettia-shakedown-Italian-mafia-makes-shop-owners-offer-they-can-t-refuse
@Innocente
It’s all a matter of how much “Pizzo” one is willing to pay! . 😯
http://www.nytimes.com/2013/12/17/us/politics/federal-judge-rules-against-nsa-phone-data-program.html?nl=todaysheadlines&emc=edit_th_20131217&_r=0
Interesting article on NSA & phone calls, but more interesting is the picture:
Here is an effective way to advertise CBT in W DC —– put a sign on the buses.
@Mark Twain
GREAT IDEA 💡
I think ACA should get on this immediately!
I’d be willing to make a more than generous contribution.
Hey, can I deduct that from my taxes? 🙄
Pingback: Stopping FATCA in Switzerland | FATCA | Scoop.it
This too is not a myth:
http://www.nzz.ch/wirtschaft/kommentare/der-aerger-mit-fatca-1.18211234
Google Translate: http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.nzz.ch%2Fwirtschaft%2Fkommentare%2Fder-aerger-mit-fatca-1.18211234
Swiss Banks Are Now Agents for the IRS
Interesting dialogue (and lack thereof):
http://on.fb.me/1cTXWfv
@NotThatTara,
re; the lack of dialogue and …”We hope that with FATCA coming in to effect in 2014, the problem will lessen. …”
Right. The problem will lessen? People with legal local savings can’t get banking services.
President Obama, US representatives, and the Swiss consulate in New York say: Let them eat cake.
pronto!
http://www.ticinonews.ch/ticino/188837/fallito-il-referendum-contro-gli-accordi-fatca
Sadly, the article that Pizza TI posted suggests that with only a couple of days remaining to collect signatures, they are about 10,000 signatures short of getting a referendum on FATCA in Switzerland.
http://translate.google.co.uk/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.ticinonews.ch%2Fticino%2F188837%2Ffallito-il-referendum-contro-gli-accordi-fatca
I’m afraid I can confirm that it looks like we’ll be about 10’000 signatures short. Still, on 16 January around lunchtime we’ll be handing in the signatures at the federal chancellery in Berne.
@AJ and Edelweiss and Pizza TI
Damn…
Swiss Citizens need to see some of the “Unbelieveable” coverage in Canada CBC
It was a BIG day in CBC coverage of FATCA on TV, Print and Radio…
Here are the TV interviews and stories…
Here are the Print…
http://www.cbc.ca/news/canada/u-s-fatca-tax-law-catches-unsuspecting-canadians-in-its-crosshairs-1.2493864
1,700 plus comments in less than 24 hours!
http://www.cbc.ca/news/canada/fatca-facts-what-canadians-need-to-know-about-new-u-s-tax-law-1.2493882
and here is the TV coverage… Mainstream Coverage at The National and Toronto Local news at 6p.
Allison Christians interview.
http://www.cbc.ca/player/News/Canada/ID/2429871653/
CBC The National (Nightly News Coverage)
http://www.cbc.ca/player/News/ID/2429927085/
CBC Toronto Coverage News at 6p. Minute 14.50
http://www.cbc.ca/player/News/Canada/Toronto/ID/2429904841/
FATCA is NOT stealth in Canada anymore!