Wealth Management

UBS poised to settle tax case with Italy for $110 million

UBS/Bloomberg

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The move comes just three months after UBS was ordered to pay more than $5 billion for helping French clients to launder their assets in a record verdict.

Wednesday 22, May 2019

(Bloomberg) --UBS Group is close to settling a tax evasion case with Italy for about EUR 100 million ($110 million).

The Swiss bank had said it faced claims from tax authorities and a prosecutor’s office in Italy regarding its activities over a five-year period starting in 2012, without giving further details.

Credit Suisse Group in 2016 agreed to pay EUR 109.5 million to Italian authorities investigating the bank’s past use of insurance policies, allegedly to help clients evade taxes.

In February, a Paris criminal court ruled that UBS illegally laundered funds by providing French customers with banking services to hide assets from tax authorities and the lender said it would appeal the ruling, which delays the need to make any payments until there is a final decision from higher courts.

The Guardia di Finanza, Italy’s financial regulator, earlier this year sent a letter to Swiss lenders asking for a list of all their Italian units, data on local relationship managers, as well as an explanation of how Italian clients’ assets are managed.

Italian authorities received about EUR 20 billion ($22.7 billion) in 2017 from cracking down on evasion, a 5.6 per cent increase from a year earlier, in part from a tax amnesty the government offered to encourage citizens to repatriate money stashed abroad.

The Swiss bank is also facing a tax fraud probe in Belgium while German prosecutors are seeking a fine of EUR 83 million ($93 million) against the lender for helping customers evade tax.

 

TAGS : UBS Group, Credit Suisse Group, Guardia di Finanza

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