Following the settlement between the IRS, UBS, and the Swiss government, the IRS probe now widens to include UBS’ operations in Hong Kong. According to court documents filed by the US government, UBS used Hong Kong-based entities to launder funds received from its American clients. As The Wall Street Journal reports, recent plea agreements negotiated between American clients of UBS and the US government are beginning to reveal how the Swiss bank serviced its US clients in its ellaborate efforts to help clients evade US taxes. As these plea agreements continue to be publicized, we should begin to better understand the extent of UBS’ illegal activities and, hopefully, the extent to which the Swiss bank swindled the American public. Remember, the evaded income tax revenue has to be made up somewhere, be it through borrowings (sales of US Treasury bills) or other taxes.