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The U.S. Tax Program for Swiss banks: what determined the penalties?

Author

Listed:
  • Yvan Lengwiler

    (University of Basel, Faculty of Business and Economics (WWZ) and Center for Innovative Finance (CIF))

  • Albana Saljihaj

    (University of Basel, Faculty of Business and Economics (WWZ))

Abstract

The U.S. Tax Program for Swiss banks is a very significant part of the recent history of the Swiss financial industry. It has accelerated the transformation of the Swiss banking industry from a system that relied on bank secrecy to a much more compliant one. It was also rather costly for the banks involved. This short paper tries to identify the determinants of the individual penalties that were levied by the DoJ. We find that U.S. assets under management is the most important determinant. However, the average size of the accounts, the behavior of the bank vis-à-vis its American clients, the solvency of the bank, and the point in time when the bank settled with the DoJ also matter.

Suggested Citation

  • Yvan Lengwiler & Albana Saljihaj, 2018. "The U.S. Tax Program for Swiss banks: what determined the penalties?," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 154(1), pages 1-12, December.
    • Handle: RePEc:spr:sjecst:v:154:y:2018:i:1:d:10.1186_s41937-018-0024-0
    DOI: 10.1186/s41937-018-0024-0
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    References listed on IDEAS

    as
    1. François-Xavier Delaloye & Michel Habib & Alexandre Ziegler, 2012. "Swiss banking secrecy: the stock market evidence," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 26(1), pages 143-176, March.
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    More about this item

    Keywords

    Tax evasion; Bank secrecy;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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