UBS Settles German Tax Dispute
by Ulrika Lomas, Lowtax.net, Brussels
31 July, 2014
UBS has resolved its cross-border tax dispute with authorities in the German city of Bochum – a settlement that the Swiss bank says will allow it to move forward in what it described as an important market.
In a letter to shareholders announcing its second quarter results, UBS confirmed that the settlement involved the payment of approximately EUR300m (USD402.8m). It adds that as a result of "significant efforts" by the bank, over 95 percent of its German clients have either provided evidence of tax compliance or completed a voluntary compliance program. UBS will continue to target a 100 percent compliance rate by year-end, it said.
UBS's latest financial report explains that two different authorities have been conducting investigations against UBS Deutschland AG and UBS AG, respectively, and against certain employees. UBS has cooperated with the authorities within the limits of financial privacy obligations under Swiss and other applicable laws, it said.
With regard to the proceedings launched by the authorities in Mannheim, the report states that these "have not revealed sufficient evidence supporting the allegations being investigated."
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