Switzerland’s UBS will not have to pay a fine as part of the settlement of a tax evasion dispute with the United States, two Swiss newspapers have reported. The NZZ am Sonntag and SonntagsZeitung both also reported that data of some 5,000 UBS clients would be released to the U.S. authorities. The two papers cited unnamed sources familiar with the case, said Reuters. The U.S. government and UBS struck a deal to settle a dispute over tax evasion and Switzerland’s bank secrecy on Friday, heading off a showdown that had threatened to damage relations between the U.S. and Switzerland. The sticking point was that U.S. authorities wanted UBS to disclose the names of 52,000 wealthy American clients suspected of using the bank to evade taxes — a demand that tested Switzerland’s banking secrecy. The court trial against UBS has been reset for Aug. 10, but would be called off if a final deal is signed. Swiss diplomat Michael Ambuehl told the NZZ am Sonntag, the deal would not violate Swiss law. “The Swiss legal system is maintained, because the U.S. have promised to act on the basis of the current agreements and to ask for legal assistance again,” said Ambuehl, who is state secretary in the foreign ministry. Under the settlement, described as an “agreement in principle” expected to be finalized by next Friday, UBS is likely to reveal far fewer than 52,000 client names, but would include the biggest accounts.
UBS Will Not Pay Fine to Settle Tax Dispute
The U.S. government and UBS struck a deal to settle a dispute over tax evasion and Switzerland’s bank secrecy, heading off a showdown.
August 3, 2009