Texas Attorney Joseph Garza on US-Swiss Tax Dodger Crackdown: "Don't Evade, Plan"

DALLAS, TX--(Marketwired - Jul 30, 2013) - As the US-Swiss tax evader crackdown ensues, prominent Dallas attorney Joseph B Garza, a nationally known asset-planning and tax attorney, has some advice to offer the wealthy seeking ethical tax reduction strategies: "Do not try to evade your taxes, but instead plan ahead properly, and legally reduce your tax liability while safeguarding your assets and protecting your legacy."

Earlier this year, Wegelin & Co., one of the oldest and most respected Swiss banks, was hit with a criminal indictment by the United States government. A bank that had previously withstood the invasion by Napoleon as well as two World Wars was brought to its knees by a U.S. criminal investigation. The investigation was aimed at cracking down on wealthy tax evaders who have relied upon the secrecy of the Swiss banking system to shelter and hide billions in taxable assets; as they essentially avoided taxes by failing to disclose their foreign holdings.

Wegelin was hit by charges that accused the entity of sheltering more than $1.2 billion in taxable income by wealthy U.S. citizens. It marked an unprecedented turn in history, being the first offshore bank ever to be indicted on criminal charges by the U.S. In the aftermath, the bank was taken over by its rival, Raiffeisen Group, and secret lists of U.S. account holders were handed over to the IRS for investigation and prospective prosecution.

"The amended tax treaty between the United States and Swiss governments essentially makes the entire Swiss banking system far more transparent to governments seeking to collect on unpaid income taxes," explained Garza. "This unprecedented crackdown on tax dodgers is not just limited to the U.S., either; it's been piggybacked by many nations in the E.U. seeking to collect on unpaid income taxes by wealthy tax dodgers as these nations struggle to balance their budgets and make it through the peak of an international recession."

A common tactic used in the evasion of taxes on an international scale often involves the usage of "dummy" corporations and shell companies, which are designed to veil the income that's being dispersed. These corporations illegally reduce the tax liability exponentially, or completely hide the income while laundering it into secretly-held accounts in offshore banks and trusts. With the end of the Swiss banking secrecy era, instances of tax evasion are being highly scrutinized. On a corporate scale, the G20 Summit is set to meet later this year and is proposing adopting a new tax treaty to crack down on corporations that play a similar cat and mouse game with dodging taxes.

"Tax evasion is a very serious charge and such unscrupulous methods should never be pursued when seeking to reduce tax liability," Garza said. "There are many proven legal methods that legally, ethically and effectively reduce overall tax liability. There is no reason to gamble with the IRS any more than necessary."

About:

Texas Attorney Joseph B. Garza has been practicing tax law for more than 30 years, specializing in the areas of asset protection, estate planning and complex tax transactions for businesses. He is the senior partner of Garza & Harris, Ltd., proudly serving clients in Texas and nationwide.

Learn more about Garza & Harris, Ltd. by visiting: http://www.garzaharris.com.