Sarkozy's effort against tax havens rocked

PARIS, April 3 (UPI) -- French President Nicolas Sarkozy's work to regulate tax havens has been rocked by reports he helped clients open accounts in Switzerland, one such haven.

The allegations focus on Sarkozy's work as a commercial lawyer in the 1980s and 1990s, a time when seeking tax shelters was common, The Times of London reported Friday.

The Elysee Palace did not comment on the report published Thursday by Rue89, a news Web site.

Sarkozy threatened to walk out of the Group of 20 summit in London unless participants agreed to his proposals to radically reform global financial regulation and what he termed "Anglo-Saxon" business practices. He said tax havens should be more transparent and accountable, adding, "we want lists of financial centers that do not cooperate ... and to draw the consequences of that."

The Rue89 story expanded on details of Sarkozy's Swiss connections that surfaced during the 2007 presidential election campaign. The original reporting and the latest account do not suggest that Sarkozy acted illegally, the British newspaper said.

French officials estimated the government loses about $20 billion a year in taxes through fraudulent use of havens by French taxpayers.