UBS Tax Probe Ends After Five Years, Claims Allegations Are Unfounded

The UBS tax probe has finally ended after five years the French investigating judges alleged the bank helped the Americans in tax evasion.  The investigating team finished its inquiry on Feb.19 putting the Swiss bank close to facing a trial.

Once the result of the investigation has been filed over the next three months, the investigating judges will decide whether or not they will be facing a prosecution, according to Bloomberg. UBS paid $780 million to the U.S. in 2009 to avoid a trial. That time, UBS confessed assisting Americans to avoid taxes. They also concurred to protect the information on the clients' accounts.  As the UBS' tax probe ends, the Swiss bank has retained its claim to say that the allegations were unfounded.

"After an investigation lasting more than five years, we look forward to the opportunity to respond to unfounded allegations and also take adequate action to address unprecedented leaks to the media which stand in violation to a fair and confidential judicial process," UBS said in emailed statement to Reuters.

In July 2014, reports claimed that settlement talks between UBS and the French authorities were happening after the bank pleaded guilty.  A formal assessment was conducted and the investigating judges asked UBS to post a bail of 1.1 billion euros ($1.2 billion).  UBS had appealed in France, but they didn't succeed.  The bank appealed to the European Court of Human Rights, and alleged that the French investigations are unprecedented and unwarranted.  UBS' tax probe also extends to its French unit where it posted a bail of 10 million euros.

"It will be up to investigating judges to send the parties to trial or not," the prosecutor's office said.

UBS is among the world firms that were put under scrutiny by the U.S. and the European authorities for its speculated role in controlling the foreign-exchange markets, The Wall Street Journal claims.  The UBS' tax probe is part of the long-standing effort of the U.S. to find affluent Americans who go off-shore to evade taxes.

Since the UBS' tax probe, the bank's share displayed a loss of around 22% this year.

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UBS Tax Probe, UBS AG, UBS Group AG, UBS helping Americans tax evasion, US tax evasion

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