NEW YORK, July 1: Tax evasion is a global phenomenon. So is stashing ill-gotten wealth in off-shore banking. The government leaders in Bangladesh often say that they are seeking repatriation of stolen money kept in foreign banks, They frequently say the UN will be involved in the process.
The UN do not have any mechanism to come to the aid of its member countries to retrieve the stolen money. Retrieving stolen money from foreign banks is a very difficult task.
The United States is one country where tax dodging is well-nigh impossible. Yet then tax evasion is not entirely unknown here. UBS, the giant Swiss Bank and Internal Revenue Service (IRS) the American agency charged with not only collection of tax but which maintains a strict vigil to prevent any wrongdoing are entangled in a battle.
Prosecutors in America suspect that the Swiss Bank has helped its US clients stash $20 billion overseas in secret off-shore accounts, evading tax to the tune of $300 million. IRS is making an all-out bid to force UBS to furnish the names of its American clients. Swiss Banks are known worldwide for their secrecy.
UBS is considering turning over the names of its American clients to IRS but only after satisfying that such disclosure does not contravene the Swiss law. Many fear that any such move would open the floodgates to a flow of information about tax shore evasion. It is said about 50 UBS employees regularly travel to US to serve the American tax payers. The UBS had reportedly assured its American clients that secrecy about their accounts will be diligently guarded.
IRS won a similar case against the reputed credit card firm, the MasterCard, which allowed its clients to the use credits for withdrawal of money from off shore tax havens. The MasterCard had to turn over the names of its 230,000 account holders to IRS.
In another cross border legal battle a French court has ordered EBay to pay the French company LVMH Moet Hennessy Louis Vuitton, manufacturer of luxury and fashion products 8.6 million euros ($60.8 million) in damage for promoting counterfeit products. The French company said 80 percent of world famous Louis Vuitton bags and Christian Dior perfumes sold on eBay are fakes. eBay said it would contest the French court verdict. The French court in its verdict had said that eBay was not doing enough to stop sales of counterfeit goods. eBay has confronted such legal challenges in France, 'where luxury goods companies are fiercely protective of their brands'.
eBay in its defence said that it has over 2000 people worldwide to prevent counterfeiting and removes 95 percent fraudulent listing. eBay said in its drive to clean up the operation it has suspended over 50,000 sellers.
Bank of New York is fighting a legal battle in a Russian court challenging the claims of Russian Customs Service that it be paid $22.5 billion. And in France former President of Airbus, manufacturer of the giant A380 aircraft, has been taken into custody in connection with the inquiry into aerospace and defence giant. Investigators are inquiring into share sales scandals.
