UBS – Another Tax Fraud Trial on the Horizon

<p><span>UBS navigates a legal labyrinth as French courts demand a new trial
over a €1.8 billion tax fraud case. The financial drama unfolds with a
recalibrated penalty in a complex legal tussle.</span><br></p>
<p>&nbsp;<br></p>
<p><a href="https://www.financemagnates.com/tag/ubs/" target="_blank" rel="follow">Swiss bank</a>, UBS finds itself back in the spotlight. France's highest court has <a href="https://www.ft.com/content/e49ecfb8-00e9-4828-bf66-30cb059f4900">decreed
an encore to the Swiss giant's legal drama</a>, after striking down fines of €1.8 billion imposed by a lower court.</p>
<p>&nbsp;<br></p>
<p>Whilst the guilty verdict has remained, the final fine for the Swiss
bank is still uncertain after it&nbsp;helped wealthy French clients hide
undeclared funds in Swiss bank accounts between 2004 and 2012.</p>
<blockquote><p lang="en" dir="ltr">France's supreme court annuls penalties against UBS in tax evasion case – ruling <a href="https://t.co/kkJtFUlRbO">https://t.co/kkJtFUlRbO</a> <a href="https://t.co/snFDb3DT95">pic.twitter.com/snFDb3DT95</a></p>— Reuters Business (@ReutersBiz) <a href="https://twitter.com/ReutersBiz/status/1724846017013502236?ref_src=twsrc%5Etfw">November 15, 2023</a></blockquote>
<h1>What’s It All About?</h1>
<p>In 2019, the Swiss bank was found guilty of illegal solicitation and
laundering the proceeds of tax fraud. It was hit with a €3.7 billion fine and €800
million in damage compensation to the French state. </p>
<p>&nbsp;<br></p>
<p>UBS <a href="https://www.ubs.com/global/en/media/display-page-ndp/en-20190220-france.html">immediately
appealed</a> and, in 2021, the Paris court of appeal reduced the penalty
to&nbsp;€1.8bn. UBS appealed again.</p>
<p>&nbsp;<br></p>
<p>So here we are. The courts have decided on another round.</p>
<p>&nbsp;<br></p>
<h2>A Judicial Encore</h2>
<p>In a big move, the French <a href="https://www.courdecassation.fr/en">Cour
de Cassation</a>, the country’s highest court, has upheld UBS's guilty status
but has signaled that a new trial must be held. The iconic Swiss bank faces a
reevaluation of its €1.8 billion penalty, with the Paris appeal court taking
center stage. </p>
<p>&nbsp;<br></p>
<p>UBS is steadfast in its denial of any wrongdoing, saying&nbsp;“UBS always acted in <a href="https://www.financemagnates.com//">compliance</a> with existing laws and regulations,”&nbsp; in a statement.</p>
<p>&nbsp;<br></p>
<h2>UBS France Stays Out of It</h2>
<p>As UBS awaits the next go around, the plot thickens. While the Swiss mother
is in the courts again, its French subsidiary is not, having chosen not to
appeal a separate €1.875 million fine. Four former UBS France executives
received suspended prison sentences ranging from six months to one year and
fines of up to €300,000. Perhaps they’re wise to just keep quiet.</p>
<p>&nbsp;<br></p>
<p>This one ought to get juicier still.</p><script async charset="utf-8" src="https://platform.twitter.com/widgets.js"></script>

This article was written by Louis Parks at www.financemagnates.com.