While Germany has stopped most public activities for health reasons, UBS is still busy fending itself against allegations of abetting tax avoidance. The atmosphere at the court in Mannheim seems increasingly bad-tempered.
The court in Mannheim on Monday held a regular session in the trial against UBS. The Swiss bank stands accused of abetting tax avoidance in Europe’s largest economy and risks a fine of as much as 83 million euros ($90 million). The prosecutor claims that UBS transferred undeclared assets of German clients to Switzerland, using internal accounts.
After the session on Monday, the future of the trial seems wide open and the presiding judge, Ulrich Bunk, said the trial was due for a decision as to its future course.
Accept a Compromise, Judge Tells Parties
Bunk recommended UBS and the prosecution accept a compromise proposed by the chamber, according to a report in local newspaper «Mannheimer Morgen» (report in German). The details of this proposal seem fairly intricate, but the court in essence seems to favor a cancellation of the core allegation of abetting tax avoidance.
By contrast, it wants to peel off the part of the trial, which is geared towards the absorption of profit. Taken together, the compromise hence would mean that UBS didn’t have to pay a fine but still be punished through a confiscation of profit.
Short Meetings Far Between
The report in the «Mannheimer Morgen» newspaper suggests that the atmosphere in the courtroom is tense. One of the reasons given is that the trial meetings tend to be very short only to be adjourned again for long periods.
Bunk seems aggravated by the tactics applied by both sides. He said he was aware that prosecution and defendant were talking about reaching a deal, but made clear any agreement would need to be water-tight.
No Adventurism Here
His allegation of backroom dealing wasn’t appreciated by Thomas Pfeiffer, the senior prosecutor, and Hanns Feigen, the UBS counsel. They both said it was evident that a deal had to be water-tight and that the two sides wouldn’t embark on any judicial adventurism.
Pfeiffer and Feigen also said that the two sides weren’t that far away from reaching a common position and that they wouldn’t be forced into a deal by the chamber.
Pandemic May Interrupt Proceedings Again
The pandemic may affect the trial in as far as that the government intends to legislate to make it possible to stop all criminal trials for up to three months.
At the moment, the UBS trial is proceeding as normal with the next session set for April 14.
