UBS Ordered To Pay More Than EUR 4.5 Bln In French Tax Case

(RTTNews) - UBS AG (UBS) said that the French trial court issued its judgment on the cross-border matter finding UBS AG guilty and UBS (France) SA of illicit solicitation and laundering of the proceeds of tax fraud and assessed a penalty of 3.7 billion euros and 15 million euros respectively and civil damages of 800 million euros. UBS noted that it will appeal the verdict and evaluate whether the written decision requires any additional steps.

UBS said it strongly disagrees with the verdict. The bank has consistently contested any criminal wrongdoing in this case throughout the investigation and during the trial. The conviction is not supported by any concrete evidence, but instead is based on the unfounded allegations of former employees who were not even heard at the trial. No evidence was provided that any French client was solicited on French soil by a UBS AG client advisor to open an account in Switzerland.

UBS said the verdict also lacks proof and a credible methodology for the calculation of the fine and damages. The charges of laundering the proceeds of tax fraud are without merit, as the predicate offence of an original tax fraud of French tax payers was not proven. UBS respected and followed its obligations under Swiss and French law as well as the European Tax Savings directive, which came into force in 2004.

UBS noted that it will appeal the verdict and evaluate whether the written decision requires any additional steps. Under French law, an appeal suspends the judgment of the trial court and leads to a transfer of the case to the Court of Appeals which then retries the case in its entirety.