French Prosecutors Seek Lower Fine for UBS
In the appeal process of UBS in the tax dispute with France, the prosecutor's office wants to see the confirmation of the first-instance verdict. As reported by Swiss news agency «AWP», the prosecutors want UBS to pay a fine of at least 2 billion euros and its French subsidiary bank 15 million euros.
Lower Than the Original Fine
Thus, the required fines are significantly lower than the
first-instance ruling in February 2019. At that time, a Paris court had found
UBS guilty of tax fraud, money laundering, and unauthorized acquisition of
clients on French territory and ordered it to pay a record fine of 3.7 billion
euros plus a payment of 800 million euros to the French state.
UBS, which denies all allegations against it, immediately
appealed.
Penalties for UBS Bankers
French prosecutors continue to see it as proven that the Swiss
institution sent employees to France between 2004 and 2012 to recruit wealthy
clients in France. They also said the sentences for six convicted UBS bankers
will be upheld.
The size of the fines is likely to remain unacceptable for
the bank, but the prosecutor's demand points UBS in the right direction. The
bank has set aside provisions of around 450 million euros in the tax dispute
with France. In addition, the institution has already had to block a bail sum
of 1.1 billion euros.
Time Is Crucial Factor
The Swiss are now benefiting from the time factor: according
to a leading ruling from the end of 2019, qualified tax fraud will no longer be
fined equally heavily in France. The basis for calculation is no longer the
incriminated assets, but only the taxes actually evaded.
The trial in Paris will continue until March 24, and the
verdict is not expected for another three months. This verdict could also be
appealed to a higher court.
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