The Swiss business of U.K. bank HSBC has settled a tax fraud case in Belgium and will pay compensation for losses caused. The case involved allegations about using off-shore companies to avoid paying EU taxes.
The Swiss private banking unit of HSBC agreed to pay almost 300 million euros ($335 million) to settle a legal case pursued by Belgian prosecutors, according to a report by «Reuters».
The prosecutor had charged HSBC in 2014 for a variety of illegal financial activities, helping clients avoid paying taxes. It used off-shore companies in Panama and other tax havens to help Belgian clients hide their assets from the taxman.
Pending Court Approval
A spokesman for HSBC declined to comment, «Reuters» said.
The deal still needs approval from the courts in Belgium. The money agreed as compensation will offset losses in tax revenues caused by the bank since 2013, according to the prosecutor’s office.
