Britain, Canada, Australia, Investigating UBS (NYSE:UBS) on Tax Evasion Issues

Evidently on behind the scenes pressure from the United States, Britain, Canada and Australia are investigating UBS (NYSE:UBS) over alleged allegations it has aided U.S. customers in ducking their taxes for many years.

After the deal made between the United States and UBS, these other countries are now pursuing whether or not clients of UBS from their countries are hiding their taxable capital in Swiss bank accounts.

Many lawmakers in Switzerland are fighting changing the secrecy laws of the country which make it such a desirable place to do business. They know once they change their laws the competitive advantage they have now would go away, and they would no longer be trusted by those wanting to keep their banking practices secret.

Don't think the majority of people using Swiss bank accounts are trying to hide from tax burdens afflicted on them by their respective countries, most of them keep things secret for a number of different reasons; including safety and business purposes.

The deal with the U.S. is still waiting to see where it concludes, where the United States is pressuring the Swiss to reveal the names of about 4,450 clients it suspects have hidden capital away for the purposes of not paying their taxes.

UBS authorities said they aren't sure at all where the requests from Britain, Canada and Australia will take them, as they still must operate within the bounds of Swiss law or find themselves in jail for breaking the strong banking secrecy laws of the country.

The U.S. is using UBS as leverage against the Swiss government in order to get them to change their secrecy laws and open up their books to their prying eyes. Hopefully the Swiss will stand firm and not allow themselves to be pressured into changing a much-needed service in an increasingly hostile environment toward privacy.