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Credit Suisse: ending US tax dispute ‘top priority’

Swiss banking giant Credit Suisse says that resolving a dispute with Washington over its past assistance to US tax dodgers is a top priority.

Credit Suisse: ending US tax dispute 'top priority'
Credit Suisse headquarters in Zurich. Photo: Credit Suisse Group

Chairman of the Credit Suisse board, Urs Rohner, opened a general assembly meeting in Zurich on Friday by assuring shareholders the bank was doing everything in its power to bring the crippling dispute to an end.

"The resolution of the tax dispute is one of the most pressing issues currently facing Credit Suisse," Rohner told the assembly.

Credit Suisse is one of 14 Swiss banks under criminal investigation by the US Justice Department on suspicion they helped wealth US clients hide billions of dollars in assets from tax authorities.

Switzerland's second largest bank is expected to soon be slapped with fine of at least $1 billion and could face criminal charges.

Company chief executive Brady Dougan assured the assembly that the bank's management was fully "focused on achieving a manageable outcome and putting this issue behind us".

"We certainly understand that the sooner we can get to a resolution and eliminate the uncertainty on this, the better," he said.

A damning US Senate report found that Credit Suisse at its peak in 2006 had more than 22,000 US customers with Swiss accounts whose assets stood as high as $12 billion – mainly undeclared to US tax authorities.

Chief executive Brady Dougan apologised in February to US senators for the bank's actions, conceding it had undertaken elaborate efforts to gain new, secret American clients, but blamed the wrongdoing on a small band of rogue employees.

But his words did little to calm matters, and a senior US official told AFP earlier this week the US probe of Credit Suisse was nearing an end and that criminal charges could be brought within "a few weeks".

And the Wall Street Journal reported that Credit Suisse was about to reach an agreement with the Justice Department that would see it plead guilty and pay a $1.0 billion fine.

Rohner stressed Friday that "we are doing everything we can to resolve this matter."

He insisted the bank from the start had taken the US probe "very seriously" and had been cooperating closely with US authorities to the extent it was possible without breaking Swiss law.

Washington wants Credit Suisse to hand over the names and account details of all the US clients who had had secret accounts.

But Swiss banking secrecy laws, which appear en route to extinction under increasing international pressure, block banks from handing over any information about their clients, unless the clients are individually named in an official request for judicial assistance sent to Bern.

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MONEY

Can I get financial help in Switzerland if I’m struggling to pay the bills?

Can foreign residents who are struggling to get by receive the same financial help from the state as the Swiss do, and under what circumstances?

Can I get financial help in Switzerland if I'm struggling to pay the bills?

Say you are a foreign resident in Switzerland and find yourself short of funds, and are unable to pay your monthly bills.

Can you count on your canton’s public coffers to help you out?

Much depends on your status in the country.

If you have a residency permit, have been working in Switzerland and contributing to the social security scheme, then you can receive financial assistance, in form of subsidies, from your local authority.

This is how it works

For instance, if the obligatory health insurance premiums exceed 8 percent of the household income, then you are eligible to receive this help.

However, your canton of residence will look not only at your earnings, but at any other financial assets you hold as well.

So if your income is low but you have plenty of money in the bank in the form of savings or other investments, you will not qualify.

Generally speaking, any resident who is a low earner or has a large number of children — regardless of nationality — could be eligible for subsidised premiums, though criteria, as well as amounts, vary from one canton to another.

READ ALSO : How do I apply for healthcare benefits in Switzerland? 

What about housing?

Low-earners (again, regardless of nationality) are entitled to have their rents subsidised, under certain circumstances — the conditions as well as the income threshold is determined by cantonal authorities.

Generally speaking, in order to claim this help, you must prove that you live in the cheapest available housing in your area. (Needless to say, if you reside in a luxury apartment, you can’t ask for rent subsidy.)

If you don’t fulfill this particular condition, you will be told to move to cheaper accommodations before claiming any benefits.

Exceptions to this rule include situations such as a large number of minor children living in the household, which may make relocation — that is, finding a sizeable apartment at a cheaper price — unrealistic.

The amount of rent reduction will be set by the authorities.

Is any other help available?

If you can’t afford anything in Switzerland which, admittedly, is an extreme and rare situation for anyone working full-time and already receiving either health insurance or housing subsidy (or both), then your only other option is applying for welfare.

This, however, should be the absolute last resort if you want to remain in Switzerland and eventually apply for naturalisation, or even have your work permit renewed.

That’s because being on public assistance is grounds for refusal of citizenship — unless all the money is repaid in full in advance of your application.

READ ALSO: Can I still get Swiss citizenship after claiming social benefits? 

What about disabilities?

This falls under the general social security scheme, so if you are working in Switzerland, then you are eligible to receive these benefits.

The only exception may be people from outside the EU /EFTA — unless your country of origin has concluded a social security agreement with Switzerland.

This link provides additional information about these countries.

If you qualify for disability (and medical records confirm this), you can apply for these benefits at the social security office of your canton.

There are some other things you should keep in mind as well:

Not all foreigners who have a residency permit can apply for financial assistance.

If you came to Switzerland on a temporary permit (L or B), then you don’t have access to any benefits.

And if you ‘bought’ your Swiss residency, you can’t resort to any public help either.

The condition of your stay in Switzerland is that you should be self-sufficient enough to live here without having to work or resort to welfare benefits.

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