UBS recently disclosed that approximately 52,000 account holders from the US have in some way violated tax regulations. This pressure surmounted following a lawsuit filed in Washington, demanding that the Swiss bank disclosed more details about the account holders. From here we could surmise a few points:
1. The US capital movement policy has significant loopholes that enabled these 52,000 US citizens to wire money without detection, possibly involving an intricate web of highly skillful professionals.
2. The figure we are discussing could amount to billions of dollars, money that could have saved or at least cushion the ailing economy. I was told the President of a renowned oil co quickly disposed his shares amounting to USD77M and moved his operations to outside the US, just before President Obama took his oath.
The Madoff case is also something astounding, to fathom the amount of money invested for almost a decade by average people and even high net worth individuals. Evangelical and jewish groups, especially in Minnesota Twin Cities where it all started, were also not spared to pour some of their dough into it. Federal prosecutors are doubtful that the money could be recovered.
Law-abiding, tax-paying citizens are furious. Their money will be spent to save the dire auto and banking industry. Tax evaders get to call it a mistake, become treasury secretary or safely secure their money while skiing in the Alps.