Compliance

Former UBS Client Admitted Evading Taxes Like Her Father, US Court Told

Tom Burroughes Group Editor London November 19, 2010

Former UBS Client Admitted Evading Taxes Like Her Father, US Court Told

A former UBS client, whose father pleaded guilty to failing to tell US authorities about an offshore account, has confessed to a similar tax offence, news reports said.

Lucille Abrahamsen Jackson, 42, entered a guilty plea yesterday in federal court in Newark, New Jersey, where her father, Harry Abrahamsen, admitted his wrongdoing on 12 April. Jackson said her father set up a Swiss account in her name in 1992 to evade US taxes and that its value reached $759,376 in 2003.

She admitted to filing a false return for the 2005 tax year that didn’t declare the Swiss account or $9,842 in income on it. She said the tax loss for 2000 to 2007 was between $5,000 and $12,500.

Since the US Justice Department began a crackdown last year on UBS, Switzerland’s largest bank, two dozen clients, bankers or advisors have been charged in the US with tax offences.

Jackson, of Hillsdale, New Jersey, faces as much as three years in prison when US District Judge Dennis Cavanaugh sentences her on 28 February next year. Her father is scheduled to be sentenced on 14 March.

UBS, which no longer provides offshore accounts to US clients, avoided US prosecution in February 2009 by paying $780 million, turning over the names of US account holders and saying it helped Americans hide assets from the Internal Revenue Service. In August, UBS handed over thousands of client account details to settle a separate, civil case. Earlier this week, the IRS announced it had brought its case against UBS to a close.

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