UBS tax evasion lawsuit withdrawn by US authorities

17 November 2010

The US authorities has dropped a lawsuit it filed against Swiss bank UBS alleging that the financial institution had assisted its clients in tax evasion.

According to the Internal Revenue Services (IRS), it has agreed to withdraw a summons for UBS after it had received details on up to 4,000 account holders from the institution.

The information was due to be handed over as part of an agreement made by the US authorities with the bank and the Swiss government back in August 2009.

Doug Shulman, IRS commissioner, said: “As part of this agreement, the IRS has received approximately 4,000 UBS treaty-request accounts so far. We will get even more after the remaining account-holder appeals have been decided by the Swiss Federal Administrative Court.

“These UBS treaty request account holders face a full-blown audit - and potentially more, depending on the circumstances - unless they came in through the voluntary disclosure program first.”

The IRS expects the Swiss bank to have handed over 7,500 account details by the final count.

According to the Swiss government, the summons has now been “fully and definitely” withdrawn.

By Jim Ottewill

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