Government takes action in UBS files case
The Swiss government has forbidden wealth management giant UBS to hand over client information to the United States tax authorities.
In a letter addressed to the Miami court where UBS faces a hearing next week, the government said UBS was prevented from disclosing the data under Swiss banking secrecy laws.
UBS is refusing to provide information sought by the US Internal Revenue Service (IRS) on 52,000 American holders of Swiss bank accounts.
The Swiss justice ministry said on Wednesday that the government would seize UBS client data, if necessary, to prevent any handover of information.
“Switzerland will use its legal authority to ensure that the bank cannot be pressured to transmit the information illegally, including if necessary by issuing an order taking effective control of the data at UBS,” the Swiss government said in a response filed in Miami on Tuesday to US authorities.
Bern was reacting to the stance taken by the US on June 30, affirming that the bank would not face prosecution if it complied with the demand for information.
Economics Minister Doris Leuthard underscored the governnment’s position in an address to the Swiss American Chamber of Commerce in New York on Wednesday.
She said the Swiss parliament was unlikely to ratify a double-taxation agreement signed with Washington last month “if the legal action against UBS will not be solved”.
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