WASHINGTON, D.C. - Chairman Richard Neal (D-MA), delivered the following statement at a Select Revenue Measures Subcommittee hearing entitled, “Banking Secrecy Practices and Wealthy American Taxpayers:"
“I call this hearing to order. Please take your seats.
“I want to welcome everyone to this hearing of the Select Revenue Measures Subcommittee on the issue of bank secrecy and tax avoidance.
“John F. Kennedy once said, “The very word ‘secrecy’ is repugnant in a free and open society." Fostered by today’s technology, those comments are truer today than ever. But bank secrecy has long held a certain charm. In fact, mystery writers have utilized the Swiss bank as the central focus for intrigue. Where else would you think to store the secrets of the Holy Grail than in a Swiss bank account, as was the case in the novel “The Da Vinci Code." But, events of the last year have chipped away at this polished veneer to reveal some rather unseemly criminal behavior.
“It has been one year now since a Swiss banker admitted that he and his bank assisted wealthy US taxpayers in hiding money in offshore accounts, that number somewhere between 250 and 50,000 previously hidden US accounts. The bank has not denied its part and will pay a $780 million fine. But despite the best efforts of the IRS and the Justice Department, the names of those US taxpayers have not been divulged. Swiss law has prevented the bank from doing so and the treaty is of no help.
“It seems there are fewer and fewer willing to stand up for such confidentiality in the face of criminal behavior. On the eve of the gathering of leaders of the wealthiest nations, the short list of international issues to be discussed includes tax havens.
