France court rules UBS must deposit guarantee of 1.1 billion euro in tax probe News
France court rules UBS must deposit guarantee of 1.1 billion euro in tax probe

[JURIST] A French appeals court ruled Monday that Swiss bank UBS [corporate website] must deposit a guarantee of 1.1 billion euro in an investigation of charges for aiding in tax evasion for wealthy French customers. In July UBS was put under formal investigation for allegations of laundering the proceeds of tax evasion. French judges requested the payment amount on grounds that it reflects the size of the fine UBS could pay if found guilty. The bank appealed in July and had already paid a guarantee of 2.875 million euro. UBS considers [Reuters report] the legal basis and sum calculation to be “deeply flawed.”

The French tax investigation is one of many legal disputes involving UBS [JURIST news archives]. In March an Italian appeals court overturned convictions of fraud oversight [JURIST report] of many banks, including UBS. In January a judge for the US Bankruptcy Court for the Eastern District of Michigan [official website] rejected a proposed $165 million settlement agreement for Detroit to pay off UBS and Bank of America. In December 2012 the Department of Justice announced [JURIST report] criminal charges against two former UBS traders for allegedly helping the bank manipulate foreign interest rates. In September 2012 the US Internal Revenue Service [official website] awarded $104 million [JURIST report] to a former UBS banker for his role in uncovering that UBS helped American clients shelter assets from US tax liability.