UBS tax deal due tomorrow
THE US and Switzerland are expected to reach a final settlement tomorrow to end a tax row against UBS, but details of the deal will not be made public the same day, sources familiar with the situation said.
US tax authorities have sued UBS as the bank refused to hand over the names of 52,000 US holders of secret accounts. A deal would spare the Swiss bank giant a trial that is due to start on 10 August.
Earlier this week UBS agreed to provide the details of 5,000 rich American clients who may have evaded taxes to the US authorities. The move is expected to see the stricken bank walk away from the legal spat without a fine.
This has helped Berne and Washington to reach an agreement in principle and they have said they want to finalise the deal by tomorrow, when a status call by the US judge presiding over the case takes place.
“I cannot foresee the details would be simultaneously divulged,” a source familiar with the situation said, adding the details would not be made public before next week.
The settlement is likely to include the handing over of some UBS client data to the US but UBS will be spared paying a fine, US government sources have said. A second source also confirmed the details were unlikely to be made public tomorrow.
There had been speculation the US and Switzerland would wait until the end of September to finalise the settlement to wait until the end of a US voluntary tax disclosure programme.
“I do not think there is any link,” one of the sources said.
UBS, the Swiss finance ministry, the Swiss justice ministry and foreign ministry declined to comment.