WASHINGTON—
U.S. banking officials plan to appear on Capitol Hill this week to address allegations that Britain's largest financial institution helped global clients avoid taxes and hide hundreds of millions of dollars in assets.
U.S. Federal Reserve Governor Maryann Hunter is expected before the Senate Banking Committee to discuss the revelation of 106,000 hidden accounts at the Swiss subsidiary of the British-based HSBC Holding Plc and what the U.S. is doing regarding Americans involved.
The International Consortium of Investigative Journalists (ICIJ) and several news organizations obtained bank documents dating back to 2007 that reveal the scope of the tax dodging.
The leaked documents contain details about more than 100,000 clients from around the world - both individuals and legal entities.
According to the ICIJ report, academic studies estimate that $7.6 trillion is held in overseas tax heavens, preventing governments from collecting about $200 billion a year in tax revenues.
Later this week, U.S. Deputy Associate Attorney General Geoffrey Graber is expected to testify about the leak and U.S. tax recovery efforts at a House of Representatives judiciary subcommittee. Tough questions are likely to be raised as to why the U.S. government has not been more aggressive in hunting down alleged tax cheats, analysts say.
The United States, along with Belgium, Argentina, India, and others, are said to be investigating the massive bank.
More here: US to Probe How HSBC Bank Helped Clients Avoid Millions in Taxes