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EUROPE: Agreement Imminent in UBS Tax Dispute?


Added on 23/05/2019

As published on finews.com, Thursday 23nd May, 2019.

 

In France and Germany, UBS is fighting hard to avoid a conviction for avoiding tax avoidance. In Italy however, the bank may soon reach an agreement.

Switzerland’s largest bank has been part of official probes about helping customers avoid paying taxes in three neighboring countries – Germany, France and Italy. In the latter, UBS seems close to reaching an agreement with the authorities, according to a report by «Bloomberg», which cited sources that remained unidentified.

The deal will cost the Swiss banks about 100 million euros ($112 million), according to «Bloomberg». The sum would be in tune of what Credit Suisse was forced to pay in 2016. The second-largest Swiss bank paid 110 million euros for selling insurance solutions to clients which helped them stash away their assets.

UBS has come under sustained pressure on several fronts: in February, the bank lost its case in France and was ordered to pay 4.5 billion euros. The bank has appealed the verdict, but shareholders voiced their discontent at the annual general meeting.

In the German city of Mannheim, the prosecutor has launched an attack on the German branch of UBS. The probe came as a surprise as the tax dispute between Germany and UBS had been closed following a deal in Bochum.