UBS tax evasion penalty cut by French appeals court
A fine on Swiss lender UBS for allegedly helping wealthy customers in France evade taxes was today slashed to £1.5bn.
A Paris appeals court reduced the original penalty from over £3.8bn.
However, the court upheld the original judgement that the Swiss lender was guilty of promoting illegal banking services and money laundering.
UBS is intending on making a swift decision on whether to appeal against the ruling in France’s Supreme Court, a lawyer representing the bank said yesterday.
“The bank takes note of this decision,” Herve Temime, a lawyer representing UBS said after the verdict.
“Compared to the first instance ruling, there is a financial gain of €2.7bn, but it is a criminal conviction and therefore we will make our decision very quickly.”
Confirming a verdict reached in 2019, the French appeals court found UBS guilty of soliciting clients illegally at sporting events and parties in France, and of laundering the proceeds of tax evasion.
Analysts at investment bank Citi expect UBS to book another £1.1bn charge in the fourth quarter of this year, assuming it does not appeal the verdict.
UBS has already booked over £383m in provisions in connection with the case.