Connecticut Attorney General's Office

Press Release

Attorney General Says Millions In Tax Revenue Possible After 148 Taxpayers Acknowledge Offshore Accounts

February 8, 2010

Attorney General Richard Blumenthal announced today that at least 148 Connecticut taxpayers, through a voluntary disclosure program, have acknowledged using offshore accounts with Swiss banking giant UBS to evade taxes.

This voluntary disclosure program will enable the state to recover several million dollars.

Blumenthal said, "Wealthy tax evaders should heed this last call: pay up now or pay penalties later. Our investigation will ultimately and inevitably identify all tax evaders who secretly hid money in offshore UBS accounts, shortchanging hard-working Connecticut taxpayers.

"This voluntary disclosure program potentially provides millions in badly needed revenue to the state. Nearly 150 offshore UBS account holders wisely stepped forward to acknowledge money owed to the state -- and we urge all to do the same. Identification of these wealthy taxpayers is inevitable and unavoidable.

"My investigation is continuing aggressively in collaboration with state and federal tax authorities to track down every tax evader to collect every penny owed. Millions of Connecticut taxpayers are bearing the burden of maintaining roads, public safety and education -- while some of our wealthiest citizens are surreptitiously siphoning money overseas. These wealthy tax evaders cannot stick struggling taxpayers with all the bills and burdens."

Blumenthal launched an investigation last year to identify how many Connecticut residents were among the 4,450 U.S. citizens siphoning money to offshore UBS accounts and evading federal and state taxes.

Blumenthal has been working with the U.S. Department of Justice and Internal Revenue Service to obtain the identities of account holders that UBS has provided to federal authorities. That information will eventually be shared with state officials, exposing state tax evaders to significant penalties.

In the meantime, the state initiated a voluntary disclosure program to allow any UBS offshore account holders to voluntarily report these accounts before federal authorities disclose the full list. At least 148 Connecticut residents have stepped forward, enabling the state to promptly recover tax revenue.

The voluntary program expired Jan. 15, but Blumenthal urged additional account holders to come forward under standard voluntary disclosure procedures to avoid facing potentially more serious and inevitable penalties after federal authorities disclose all account holders.