The big bank has to pay a mega-fine because of the tax dispute in France. In the appeal process, the judgment of the first instance was confirmed. The fine is now smaller.
In the appeal process, the verdict was confirmed on Monday: UBS only has to pay 1 , 8 billion euros in France.
UBS has to pay a mega-fine because of the tax dispute in France. In the appeal process, the verdict was confirmed today, Monday. However, the payment is smaller than in the first instance. Instead of 3.7 billion euros, it is now only 1.8 billion euros.
The decision was positively received on the stock exchange: shortly after the decision was made public, the UBS share rose to around 2 percent, having previously been in the red.
Black money in brought Switzerland
The public prosecutor's office demanded a fine of at least two billion euros in the newly opened process before the Paris Court of Appeals, thus requesting confirmation of the previous judgment. The defense demanded an acquittal.
The allegations go back to the years 2004 to 2012. The public prosecutor's office accuses UBS of having sent employees to France at the time to attract a wealthy clientele. UBS is said to have encouraged customers to place their money in Switzerland past the French tax authorities. In total, assets of more than ten billion euros should be involved.
In the case, the big bank was fined more than 3.7 billion euros in the first instance more than two and a half years ago. The court had ruled that it was an offense of “exceptional gravity”. According to court circles, a penalty for tax fraud of this level was unprecedented in France.
The court had also ruled that UBS, its French branch and three former officials must collectively pay € 800 million in damages to the French state. The state had acted as a joint plaintiff in the process.
The credit institution appealed the judgment. It rejected allegations of criminal misconduct and called the decision incomprehensible.
Notes from former employees
The investigations into the tax affair were based on clues from former UBS employees got rolling. In other countries, too, UBS was targeted by the authorities for doing business with tax evaders.
In Germany, the institute agreed with the judiciary in 2014 on a fine of around 300 million euros. In the USA, the bank had to accept a fine of 780 million dollars in 2009.
(with material from the dpa)
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