How the Super Rich Take Advantage of Swiss Banks

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Even through pressure from foreign countries has forced Switzerland to change its banking-secrecy laws, Swiss private banking is in good shape. Customers value Switzerland for its security, political stability and stable currency, and have continued to pour in new money over the past two years. Tax evasion isn't as important as sometimes supposed; much of the money coming in is from regions with low tax rates, like the Middle East and Asia. With the super-rich likely to see their wealth rise significantly in the coming years, the future is bright for Swiss banks. But, this also hurts the United States by the super rich avoiding taxes by going to Swiss banks. Switzerland plays the role as savior to many US citizens that are rich to avoid paying taxes. When you’re rich and you don’t want to pay taxes, how about you go to a Swiss Bank near you. The Swiss, have one of the most secretive banking systems around the world. The Cause and effects of banks in Switzerland are positive for the person and the country of Switzerland but negative for other country’s losing people from using their banks they avoid paying taxes. Switzerland was founded in 1291, but was officially considered a country in 1977.They didn’t however become an official United Nations member until 2002. Formally considered a confederation but, similar in structure to a federal republic. Switzerland has one of the most competitive economies in the world according to, https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html. There unemployment rate is among lowest around the world, and the labor force has a lot of highly skilled workers. In 1934, Switzerland passed the Federal Banking Act, imposing criminal penalties on bankers if they violated their prof... ... middle of paper ... ... accounts to avoid taxes. The Swiss Federal Council. (2013, May 29). Swiss government peels back bank secrecy rules. CNNMoney. Retrieved March 30, 2014, from http://money.cnn.com/2013/05/29/news/economy/swiss-bank-secrecy Don't ask, won't tell. (2012, February 11). The Economist. Retrieved March 30, 2014, from http://www.economist.com/node/21547229 Ladd, R. S. (2011, Summer). Swiss miss: the future of banking secrecy laws in light of recent changes in the Swiss system and international attitudes. Transnational Law & Contemporary Problems, 20(2), 539+. Retrieved from http://go.galegroup.com.db19.linccweb.org/ps/i.do?id=GALE%7CA264482429&v=2.1&u=lincclin_pbcc&it=r&p=AONE&sw=w&asid=8079c8c57bf69f6fc300b491ae1cf020 Switzerland. (n.d.). Central Intelligence Agency. Retrieved March 27, 2014, from https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html

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