Samantha H. Scavron (J.D. 2011, Cardozo) has published Note, In Pursuit of Offshore Tax Evaders: The Increased Importance of International Cooperation in Tax Treaty Negotiations After United States v. UBS AG, 9 Cardozo Pub. L. Pol’y & Ethics J. 157 (2010). Here is the Conclusion:

Offshore tax evasion is clearly a persistent problem affecting the ability of the IRS to collect income taxes. It is a problem for which international assistance is absolutely essential in formulating any possible solution, and it seems that other world nations have recognized this. Consequently, the United States is no longer the only nation aggressively pursuing foreign bank account information for suspected tax evaders. The success of the IRS in Switzerland has prompted other nations to begin similar inquiries using tax treaties. The amended treaty between France and Switzerland is one example. Additionally, the United Kingdom and Germany investigated accounts in Liechtenstein. Mexico asked the United States to give account information for Mexican citizens who may have money hidden in United States banks. Indeed, UBS AG has already had far-reaching effects on the proliferation of international tax agreements. Numerous nations have since adopted OECD standards for information exchange in the treaties they have signed. The OECD is optimistic that countries will continue to be open to international cooperation. This is precisely why the United States should modify policies that could hinder tax treaty negotiations.

For the sake of concluding as many DTAs as possible, the United States should seriously reconsider its two policies known to be sticking points in treaty negotiations. The UBS case has changed the way tax evaders are pursued. Existing methods for information gathering were employed during the UBS case, but it was only when treaty obligations were implicated that the optimal result was achieved. This should act as a lesson to the United States in terms of highlighting the important role of a tax treaty. Tax treaties are indispensable in the pursuit of offshore tax evaders, and the United States should do whatever is necessary to ensure that tax treaties are in place with as many nations as possible, especially with developing countries that may be acting as tax havens. To that end, it is necessary to reexamine longstanding United States policies against tax sparing provisions and the concept of treaty overrides. A change in policy may go a long way in tax treaty negotiations. Ultimately, many nations have stepped up their willingness to abide by the treaty policies inherent in an OECD Model treaty, and it would be to the advantage of the United States to join them.