Tax Law

HSBC Retreats, Abandoning Its U.S. Tax Cheat (And Probably Some Other) Private Banking Customers

The Wall Street Journal reports that HSBC is sounding a retreat from the U.S. tax cheat enabler business. Dan Fitzpatrick, Evan Perez and Laura Saunders, HSBC Acts on Offshore Cash: As U.S. Cracks Down on Tax Evasion, U.K. Bank Drops American Residents Keeping Money Abroad (WSJ 7/20/11)

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JAT Note: The move appears only to affect the wealthier U.S. depositors ($5,000,000+).  The Bloomberg report below says... "only about a few hundred will be involved."  That still leaves unaccounted for all the other U.S. depositors in HSBC who may not have qualified for or did not desire private banking services of the type subject to this notice...  However, one can project / speculate that if HSBC is willing to abandon its high net worth U.S. depositors, it will not behave better with its much more numerous lower net worth U.S. depositors.

Other Articles:
HSBC shuns private banking business from Americans outside U.S. (Reuters 7/20/11) .
HSBC Tells U.S. Private Bank Clients Banking Must Be Onshore (Bloomberg 7/20/11).

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View Jack Townsend's opinion in its entirety on the

Federal Tax Crimes blog site.

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