UBS will likely escape a German tax snafu without criminal charges and a mere scrape in financial terms.
The Swiss bank is close to a deal with prosecutors in Mannheim over charges it aided German tax evaders, local outlet «Mannheimer Morgenpost» (in German) reported. The deal would allow UBS to escape criminal charges and with a marginal clawback of profits, the newspaper reported.
The deal, which UBS has reportedly agreed to but the prosecutor not yet, is the culmination of several years of legal wrangling. The Swiss bank stands accused of abetting tax avoidance in Europe’s largest economy and risked 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.
Fresh Attack
Mannheim mounted a fresh attack on UBS' German branch last year – a surprise as a tax dispute between Germany and UBS had thought to be closed following a deal in Bochum in 2014.
UBS has come under sustained pressure on several fronts: UBS faces 4.5 billion euro fine in French criminal court, which it is appealing. The case, which cost UBS a key approval from shareholders last year, was recently pushed back to 2021 due to the pandemic.
