Take a close look at the Voluntary Disclosure vs UBS and see the propaganda

This Bloomberg.com article reinforces the point I am making about swiss banking dangers in respect to doing a voluntary disclosure.

I am bugged over this latest round of CRA propaganda because it is not honest. Can’t we at least expect the Minister of Revenue for Canada to be honest with us?

Why not just be truthful and say, “We are going to do everything we can to nail every ass in Canada for every cent we can get, starting with offshore banking.” Instead he implies  that UBS is going to turn over the names of Canadians who bank in Switzerland.

I am not saying two wrongs make a right, but I am saying it is wrong to mislead Canadians for any reason.

If you read between the lines in what Revenue Minister Jean-Pierre Blackburn says; you will see the following.

Likely if names are released, it will be for amounts over a million dollars. (A swiss frank is worth slightly more than a Canadian dollar).

UBS has refused to turn over names to Canada. Canada is “threatening” that it will sue….. I guess if they actually do launch an action, it could be more believable, that names would be turned over, but I doubt it.

If 88 Canadians who banked in Switzerland came forward and have paid 14.3 million in taxes, that would be an average of $162,500 each. That is quite short of the million threshold that applies is the USA issue.  How many of those 88 were over the one million threshold?

But the most imporant question of all is. “Did those who did the Voluntary Disclosures and up paying less tax than if they had come clean without the disclosure?” What are the real numbers. What is the story behind the aftershocks.?

I have seen in first hand. A voluntary disclosure is often not the way to go.

If you have offshore wealth, be sure to talk to someone who is not selling the Voluntary Disclosure Program, to find out if it really is the right thing for you to do or if it is absolutely the wrong thing to do.

To learn more, go to www.tax-audit-solutions.com and www.danwhite.ca

If you have a serious tax issue, contact me dw@911taxes.com

Dan White

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Here is the article by Alexandre Deslongchamps

Canada Has Tax Disclosures From 88 UBS Clients, Blackburn Says
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Dec. 2 (Bloomberg) — Eighty-eight Canadian clients of UBS AG have contacted the country’s revenue agency to voluntarily disclose income they previously failed to report, Revenue Minister Jean-Pierre Blackburn said today.

Forty-one of those customers have reached settlements with the Canadian government, reporting C$15 million ($14.3 million) in previously undisclosed income, Blackburn said in an interview today. He didn’t say how much revenue the federal government will recover from the tax adjustments.

Canada has been trying for several months to recoup tax losses caused by citizens who hid assets in UBS accounts. UBS, Switzerland’s largest bank, said in August that it will divulge information on 4,450 accounts to settle a U.S. lawsuit that sought names of clients suspected of evading taxes.

Blackburn said the government is “very firm on this; we want the list of clients and we hope that UBS fully collaborates.” He added that the government will go to court if the discussions don’t yield “tangible results.”

Switzerland said last month it will turn over details of UBS AG accounts held by U.S. residents who had more than 1 million Swiss francs ($1 million) in undeclared assets to the U.S. Internal Revenue Service.

To contact the reporter on this story: Alexandre Deslongchamps in Ottawa at adeslongcham@bloomberg.net
Last Updated: December 2, 2009 10:42 EST

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