IRS Goes after Swiss Bank Accounts of Tax Evaders

We have all heard the stories about rich people hiding their money in secret Swiss bank accounts. Well, that may no longer be possible, as least when it comes to evading U.S. income taxes.

In a lawsuit filed by the Internal Revenue Service ("IRS") and the Department of Justice ("DOJ"), the U.S. Government is seeking to compel the Swiss bank UBS to turn over information on 52,000 American depositors, whose accounts hold approximately $14.8 billion U.S. Dollars. The prosecutors will be seeking "John Doe" summons, ordering UBS to turn over information about unidentified U.S. taxpayers believe to be UBS depositors.

This case has caused a large diplomatic stir. Swiss president Hans-Rudolf Marez made a statement to assure the public that Switzerland's banking secrecy remains intact. The case was originally set to go to trial on July 13, 2009, but Judge Alan S. Gold continued the trial date to August 3, 2009 to allow parties an opportunity to settle. Judge Gold ordered the IRS and the DOJ to consult Obama administration on how far the U.S. government may be willing to proceed if UBS will not voluntarily disclose the information on the account holders. In further attempts for diplomatic resolution, U.S. Secretary of State Hillary Clinton and Swiss Foreign Minister Micheline Calmy-Rey are scheduled to meet on Friday, August 1, 2009.

Earlier this year, UBS was facing criminal charges in a separate U.S. tax dispute. UBS settled that case by paying $780 million U.S. Dollars, and turning over information on around 250 American depositors with secret bank accounts. UBS's admissions in the earlier criminal case have supported U.S. Government's demands in the instant civil case.

Switzerland's banking industry has boomed due to its secrecy, and the Swiss are reluctant to give up on that. The recent U.S. cases are unprecedented hits on the famed Swiss bank secrecy. It is expected that UBS will end its cross-border banking operations.

Some of the information in this blog were obtained from articles by The Wall Street Journal, The Associated Press, The New York Times, Reuters, and USA Today. For additional information, run a search on Google.

Robin Mashal is a partner at the law firm of Hong & Mashal, LLP, and can be reached at (310) 286-2000. His practice focuses on business law, real estate law and civil litigation. Hong & Mashal LLP is a California business law firm.

The Advertisement Battle between Microsoft and Apple

For months, Apple was running "Get a Mac" television advertisements coloring PC computers as inferior products. The ads depicted Apple Mac as a young, hip character as contrasted to the PC computer, an outdated, geeky, unreliable character.

Finally, PC started fighting back. Microsoft started running "laptop hunter" ads that challenged a shopper to find an Mac laptop computer with features found on PC laptop computers with a budget of "under $1,000". After she shopped Mac and PC stores, she chose the PC laptop and paid cash for it with the money she won in the challenge. These ads apparently did not sit well with Apple.

Apple's lawyers reportedly contacted Microsoft demanding they stop running the laptop hunter ads. Since the original PC ads started running, Apple had reduced the laptop prices, so the under $1,000 price challege no longer held true. Microsoft partially heeded the call from Apple's attorneys. Instead of discontinuing the laptop hunter campaign ads, Microsoft started running updated hunter ads that challenge shoppers to find Mac laptops with similar features to PC laptops for "under $1,700".

Apple and PC computers have been market rivals since Apple Computer Inc. (now, Apple Inc.) was incorporated in 1977. The final chapter in this competition is yet to be written. One thing is for certain that this competition prevents either of these two market forces from having an unrivaled domination of the computer market. And true competition benefits consumers with the selection, quality and price of products available in the market.

Some of the information in this article was obtained from articles on Cnet News, PC World, The Christian Science Monitor, The National Business Review, and Wikipedia.

Robin Mashal is a partner at the law firm of Hong & Mashal, LLP, and can be reached at (310) 286-2000. His practice focuses on business law, real estate law and civil litigation. Hong & Mashal LLP is a California business law firm.

Buyers Beware: Get-Rich-Quick Advertisements May be Scams

We have all seen the commercials on television, promising to give us the secret to riches for a few dollars. They seem too good to be true, but who could resist them in these economic times. As it turns out, some of the advertised items are nothing more than scams.

The government has just announced a joint operation by the Federal Trade Commission ("FTC"), the Department of Justice ("DOJ") and some state agencies, investigating companies that allegedly conned consumers out of millions of dollars through deceptive advertising and other illegal practices. The law enforcement action which has been named Operation Short Change, has targeted some widely advertised products.

Several of the investigation targets are California companies. For example, one investigation target is John Beck Amazing Profits, LLC, which apparently marketed "John Beck's Free and Clear Real Estate System". The product was sold for $39.95 and made promises about purchasers' earning potentials, but the promises were allegedly not truthful. Other targets include John Alexander, LLC and Family Products, LLC, both California limited liability companies, with addresses in Van Nuys, California.

For additional information, refer to the NetworkWorld.com article, visit FTC web site, or search Google.

Robin Mashal is a partner at the law firm of Hong & Mashal, LLP, and can be reached at (310) 286-2000. His practice focuses on business law, real estate law and civil litigation. Hong & Mashal LLP is a California business law firm.