Details of the landmark settlement of the U.S. tax case against UBS are expected this week, which should help the bank restore its image and open the way for the Swiss state to sell its UBS stake, Reuters reported.
Details of the landmark settlement of the U.S. tax case against UBS are expected this week, which should help the bank restore its image and open the way for the Swiss state to sell its UBS stake, Reuters reported.
The deal could be announced as soon as Wednesday after the first regular meeting of the Swiss cabinet following the summer recess, industry insiders said.
The world’s second-largest wealth manager will hand over details of about 5,000 client accounts, sources have said, after the signing of a deal agreed last week to end a dispute in which U.S. tax authorities originally asked for details on 52,000 clients suspected of tax evasion.
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“The (U.S.) Justice Department summons deal looks favorable for UBS and for Switzerland,” said Vontobel analyst Stefan Schuermann. “However, we remain cautious as long as we do not know the exact figures and details of the deal.”
The reputational damage to UBS will take time to repair, and money outflows, which totaled nearly 40 billion Swiss francs ($37.21 billion) in the second quarter alone, will probably continue for a while, said Mr. Schuermann.
The client accounts to be disclosed will likely belong to people suspected of committing tax fraud under the terms of a double taxation agreement that obliges Switzerland to provide help if Washington seeks it in a criminal investigation. The New York Times said last week 150 wealthy U.S. clients of UBS were likely to face prosecution by the Internal Revenue Service (IRS).
To read the full story, visit nytimes.com
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