UBS tax case unearths Swiss Banks' nightmare

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UBS tax case unearths Swiss Banks' nightmare

A Swiss Court would be deciding in weeks whether UBS, a scandal-sickened Swiss multinational bank, headquartered in Basel, should hand over their historical client data to the French authorities, investigating on potential tax evading and expensive legacy issues over Europe.

The ruling could have been a histrionic landmark over cross-border tax cheats and might force other Swiss bank to hand over their confidential client data to foreign authorities whenever demanded. A defamatory case such as this had again been brought into light, after French tax authorities had received over 10,000 UBS account numbers with potential tax fraud issue from its German peer following a thorough search into the bank’s local office.

As a repercussion, the French authorities had now been on the lookout for names, birth dates, alongside account balances of the clients to make sure the account holders had been paying their taxes, while UBS had been engaged in a caustic battle in the court, as Swiss tax authorities had agreed to French tax watchdog’s plea.

Addressing a looming uncertainty over the fate of this case, a partner at Law firm, Lalive, Daniel Buehr said, “It’s quite clear that this ruling has implications beyond (UBS’s) case and we don’t know where it will end.

Apart from the latest development, a number of European countries including France had now been hunting down suspicious tax evaders, who had been hiding money in Swiss banks having cross-border businesses with Europe.