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IRS Tax Evasion Push to Shift East From Switzerland, Former IRS Agent Says

Thursday, November 21, 2013
By Ali Qassim

Nov. 19 --The U.S. government's efforts to crack down on tax evasion by targeting Americans' foreign-held assets in non-U.S. financial institutions will increasingly extend beyond Switzerland, which has been a major focus of the Internal Revenue Service's offshore tax investigations in recent years, according to a former IRS official.

“Interest is going to move from Switzerland and on” to other jurisdictions deemed tax havens “in Asia, the U.K.’s crown dependencies and especially Singapore,” said Daniel Reeves, who spent 35 years as an IRS agent specializing in offshore tax and anti-money laundering investigations.


It's not just the taxpayer who is liable for tax evasion, “but anybody who helps. They don't have to live in the U.S.”

Daniel Reeves, Offshore Compliance & Enforcement Consulting

“There will also be an increased focus on trust service providers, financial advisers, bankers,” Reeves said, many of whom aren't necessarily located in “secret tax havens but located in New York and London.”

Reeves created the IRS Offshore Voluntary Compliance Initiative,, which began with the 2008 investigation of Switzerland's UBS AG, which led the Swiss banking giant to enter a deferred prosecution agreement with the IRS and pay $780 million in fines, penalties, interest and restitution .

Reeves, founder and principal consultant at Offshore Compliance& Enforcement Consulting, spoke Nov. 15 at the OffshoreAlert Conference in London.

To contact the reporter on this story: Ali Qassim in London at correspondents@bna.com.

To contact the editor responsible for this story: Emma Smith at emma.smith@bna.com.

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