In the appeal proceedings in Paris, the public prosecutor's office is making its demands. For UBS, these at least point in the right direction.
In the appeal process of UBS in the tax dispute with France, the prosecutor's office wants to see the confirmation of the first-instance verdict. As reported by Swiss news agency «AWP», the prosecutors want UBS to pay a fine of at least 2 billion euros and its French subsidiary bank 15 million euros.
Lower Than the Original Fine
Thus, the required fines are significantly lower than the first-instance ruling in February 2019. At that time, a Paris court had found UBS guilty of tax fraud, money laundering, and unauthorized acquisition of clients on French territory and ordered it to pay a record fine of 3.7 billion euros plus a payment of 800 million euros to the French state.
UBS, which denies all allegations against it, immediately appealed.
Penalties for UBS Bankers
French prosecutors continue to see it as proven that the Swiss institution sent employees to France between 2004 and 2012 to recruit wealthy clients in France. They also said the sentences for six convicted UBS bankers will be upheld.
The size of the fines is likely to remain unacceptable for the bank, but the prosecutor's demand points UBS in the right direction. The bank has set aside provisions of around 450 million euros in the tax dispute with France. In addition, the institution has already had to block a bail sum of 1.1 billion euros.
Time Is Crucial Factor
The Swiss are now benefiting from the time factor: according to a leading ruling from the end of 2019, qualified tax fraud will no longer be fined equally heavily in France. The basis for calculation is no longer the incriminated assets, but only the taxes actually evaded.
The trial in Paris will continue until March 24, and the verdict is not expected for another three months. This verdict could also be appealed to a higher court.
