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July 12, 2010 - Phil Hodgen

U.S. tax enforcement arrogance and its non-tax consequences

In today’s news, the Swiss government will not extradite Roman Polanski. FTA:

A Justice Department official said Monday the United States was “deeply disappointed” with the decision by Switzerland’s Justice Ministry to free filmmaker Roman Polanski instead of extraditing him to America to face sentencing for unlawful sex with a child.

* * *

“We are deeply disappointed,” said Assistant Attorney General Lanny Breuer, head of the Justice Department’s criminal division. “We thought our extradition request was supported by the facts. We’re going to review our options.

Hmmm. Forgive me but that deep disappointment at the Justice Department is a trifle rich in irony.

An email I received today from a frequent correspondent highlights the irony:

Phil

It’s interesting the following headline “Swiss won’t extradite Polanski” in today’s press.

Is the US Government finding out that chasing a small number of “US persons” around the world for little tax take, and stepping on foreign toes along the way, has unintended effects? Switzerland is a small country – it’s a fair bet this was a snub to the US Government and blaming them for not submitting the proper paperwork as well.

It is the Justice Department’s own actions against Switzerland (in the tax arena) that of course is causing blowback in other areas. The blowback is just beginning.

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