Open

Coming up

Don't miss

Replay


LATEST SHOWS

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

  • Boko Haram claims Nigeria attacks and supports Iraqi militants

    Read more

  • Israeli navy attacks Hamas base as tanks line up along Gaza border

    Read more

  • French court lifts mayor’s ban on Muslim hijab at beach

    Read more

  • Germany vs Argentina - history and genius clash in World Cup final

    Read more

  • Shells land in Russia as eastern Ukrainians flee fighting

    Read more

  • Rival Libyan militias exchange heavy fire at Tripoli airport

    Read more

  • Holland beat hosts Brazil 3-0 to finish third in World Cup

    Read more

  • Iraqi parliament fails to agree on new leadership

    Read more

  • Afghan presidential candidates agree to full vote audit, Kerry says

    Read more

  • France’s Kadri wins eighth stage at Tour de France

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

  • Putin revives old Cuban flame and eyes Latin American minerals

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

Business

Switzerland alarmed by US tax probe against UBS

©

Video by Olivia SALAZAR-WINSPEAR , Louis MASSIE

Latest update : 2009-02-20

A new lawsuit launched Thursday by the US Justice Department against Swiss bank UBS has sent shivers throughout the Alpine nation. US authorities are attempting to force the bank to disclose the identities of some 52,000 US customers.

AFP - Switzerland was feeling the heat on banking secrecy Friday after the United States stepped up its high-stakes tax probe against the biggest Swiss bank, UBS.

The widening US bid to force the bank to disclose the identities of some 52,000 US customers who allegedly evaded taxes added to recent tensions between the Alpine haven and its European neighbours.

"For me it's the beginning of the end of the abuse of banking secrecy that's still carried out legally in Switzerland, as well as elsewhere, to protect tax cheats," said Bernard Bertossa, a former Swiss prosecutor who specialised in tackling money laundering cases.

The latest lawsuit was launched by the US Justice Department in Florida late Thursday, hours after Swiss and US authorities announced a 780-million-dollar (619-million-euro) out-of-court settlement on another tax fraud case involving UBS.

The bank admitted responsibility and was forced by the Swiss financial regulator to hand over details 250 to 300 US clients on Wednesday in what the US justice department called an "unprecedented move."

But UBS vowed to fight the latest US court action in Florida.

Swiss Finance Minister Hans-Rudolf Merz insisted that banking secrecy was still intact, while business and bank leaders fended off US "pressure" and described the UBS case as isolated.

"Switzerland has lifted banking secrecy in the past for tax fraud cases, and this is nothing new," James Nason, a spokesman for the Swiss bankers association told AFP.

But Swiss media were unconvinced Friday after US justice authorities renewed their offensive despite the earlier deal.

"Banking secrecy, still only a myth," titled the Tages Anzeiger newspaper, while Le Matin said banking secrecy was facing a "death" threat.

There was outrage in Switzerland at the methods used in the inquiry as politicians accused the United States of short circuiting a legal process underway in Switzerland under a joint taxation agreement.

"This power behaviour is unacceptable," Christian Democratic Party Vice President Dominique de Buman told AFP, adding that Washington was "shooting us in the back."

But there was little sympathy for UBS as well, as the tabloid Blick slammed the bank for "turning Switzerland into a banana republic."

Taxation will also be an issue when the Swiss foreign minister meets EU Commissioner Benita Ferrero-Waldner in Brussels on February 26, officials said.

Switzerland has been facing increasing pressure from its EU neighbours over the past year to broaden measures to discourage income tax evasion.

The Guardian reported Friday that British Prime Minister Gordon Brown was targeting Switzerland in a global clampdown on tax havens that he is trying to secure for the G20 meeting.

Brown did not mention Switzerland by name in a regular press briefing in London on Thursday.

"I am more confident now, having talked to world leaders, that we are in a position to take further action on this matter."

"I am not going to name any particular organisations or countries because in the document it says very clearly that we want to look at all jurisdictions," he added in remarks posted on Downing Street's website.

Brown was advocating exchange of information between countries, a step the Swiss government has consistently refused to take because it would violate banking secrecy, preferring to tax savings accounts anonymously instead.

German Finance Minister Peer Steinbrueck slammed Swiss secrecy last year and said Switzerland should be placed on the OECD list of countries that do not cooperate against tax evasion. That list is due to be updated soon.

UBS's share price dropped by 14.1 percent to 10.9 Swiss francs by mid afternoon (1412GMT). Analyst Rainer Skierka of Sarasin bank said the litigation UBS faces was "the least of its worries" but new capital flows could suffer.

 

Date created : 2009-02-20

Comments

COMMENT(S)