Tax fraud in France: Swiss bank UBS condemned on appeal to 1.8 billion euros

UBS was found guilty of sending salespeople to France to "hunt" the wealthy clients of its French subsidiary, spotted during receptions in order to convince them to open undeclared accounts in Switzerland.

AFP / File

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UBS will have to pay 1.8 billion euros after his conviction for laundering tax evasion and illegal door-to-door sales.

This is much less than at first instance in 2018 when the Swiss bank was sentenced to 4.5 billion euros.

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In three years, the basis for calculating the fine due in the event of tax fraud laundering has changed.

According to new case law from the Court of Cassation, the base is no longer calculated on the amount of hidden assets but on the amount of unpaid taxes.

1.8 billion instead of 4.5 billion euros: The Paris Court of Appeal has therefore greatly reduced the sanction against the global giant of wealth management.

UBS is condemned for having set up between 2004 and 2012 a vast illegal system of canvassing wealthy clients.

To read also: France: the Swiss bank UBS judged on appeal for illicit canvassing

Objective: to convince wealthy French clients to open undeclared accounts in Switzerland

Clearly, the Swiss bank sent its salespeople to find new French customers spotted during social events.

With one goal: to convince them to open undeclared accounts in Switzerland.

All this without the knowledge of the French tax services. 

Results: nearly 10 billion euros defrauded according to the judges.

Through the voice of its lawyer, the bank takes note of this decision.

It can still appeal to the Court of Cassation.

Four former UBS executives were also sentenced to suspended sentences of up to one year and a fine of 300,000 euros.

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  • France

  • Taxation

  • Swiss

  • Finance

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