Credit Suisse’s $7.6 billion fine for its history of abusing the U.S. tax system and facilitating high crimes may seem like a lot of money, but it could — and should — have been a lot worse. Why did no bankers go to jail? And, perhaps more importantly, why does it still have its U.S. banking licence?
“As part of its plea agreement, Credit Suisse agrees to forego any kind of tax deduction for any of the payments it makes.”
Which is fine and dandy — good, in fact, as far as it goes. But now, from the Swiss newspaper LE MATIN:
“During the UBS scandal, the debates raged in parliament. Then, nothing happened. Or, in fact, a majority of the parties on the right (UDC and PLR) buried the idea of preventing the fines to be deductible from their profits (for tax purposes.) The result is that the record fine that Credit Suisse has just been hit with in the United States (US$2.6 billion) may be deductible after all.”
In other words, U.S. taxpayers won’t be stuck with the bill, but Credit Suisse may well foist it on ordinary Swiss citizens instead.