Switzerland Today
Dear Swiss Abroad
UBS has resolved a legacy issue: it will pay over $500 million to settle a US tax dispute involving Credit Suisse – despite not being involved in the original case. Meanwhile, the Swiss government is stepping up preparations for potential cyberattacks during the Eurovision Song Contest and the Women’s Euro football tournament.
I wish you a good read.
UBS will pay more than $500 million (CHF412 million) to settle a US tax dispute inherited from Credit Suisse. Two years after UBS’s emergency takeover of Credit Suisse, Switzerland’s largest bank is closing the chapter on a costly legacy.
UBS pleaded guilty in a US court on behalf of Credit Suisse for continuing to help wealthy Americans evade taxes – despite Credit Suisse having pledged in 2014 to end such practices. The case involved over $4 billion held in at least 475 accounts, some of which Credit Suisse continued to manage until 2023.
The $510.6 million settlement, mostly tied to US business but also involving clients in Singapore, remains financially manageable for UBS, which is covering the costs with existing provisions. The agreement does not shield individuals from prosecution. UBS emphasised its zero-tolerance stance on tax evasion and its cooperation with US authorities post-merger.
Credit Suisse previously paid a $2.6 billion fine over similar allegations in 2014.
PACS, a form of registered partnership that is particularly widespread in France, is not recognised in Switzerland. A motion in the House of Representatives sought to change this – without success.
The issue has been on the legislator’s radar for several years. Yesterday House of Representatives member Katja Christ sought to ensure that foreign registered partnerships, such as the French “Pacte Civil de Solidarité”, would be recognised in Switzerland in future. “Couples who have entered into such a partnership abroad face many uncertainties in Switzerland – be it in inheritance law, residence permits or tax issues,” she explained in the House.
In addition, Switzerland is falling behind in the skilled labour market, as many European countries have now recognised this legal form of cohabitation. Switzerland is less attractive for these skilled workers. The Organisation of the Swiss Abroad (OSA) had regularly spoken out in favour of PACS.
The federal government, however, remains firmly opposed. Justice Minister Beat Jans reiterated this yesterday, telling Christ: “I’m sure you’re aware that we don’t have a PACS at federal level in Switzerland today. We would therefore have to create one first.” He added that alternative legal arrangements already exist, and that creating a new category would not be worthwhile. Christ, however, fears “that precisely this point will not be included in the reform – with negative consequences for many affected couples in Switzerland”.
The federal government wants to save CHF3.6 billion ($4.4 billion). The consultation period for this savings package ended yesterday. The measures have been strongly criticised by political parties and representatives of public transport.
In January, the Swiss federal government submitted an austerity package totalling CHF3.6 billion for consultation. The savings plans were widely criticised. According to Swiss public broadcaster, SRF, the most favourable comments were made by individual business associations. It can be assumed that the savings package will ultimately be voted on as a whole once it has survived the debate in parliament.
The Keystone-SDA news agency has summarised the positions of the most important parties and associations known up to the end of the consultation period. Services for the Swiss Abroad, including our services for you, are also affected by the savings plans. The Organisation of the Swiss Abroad (OSA), for example, believes that “essential services” such as its general legal advice for the Swiss Abroad and services for young Swiss Abroad are under threat.
“Swiss Review” would also have to further reduce its expenditure. Cuts could also affect Swiss schools abroad. The OSA rejects the cancellation of the subsidy for the Swiss Broadcasting Corporation’s (SBC) international offering, as do the SBC itself and the Culture Taskforce. In view of the global political situation, it is of great interest for a democratic state governed by the rule of law to promote a high-quality, independent and strong international programme, writes the SBC.
The anticipation is growing: Two major events are just around the corner in Switzerland – the Women’s Euro football tournament and the Eurovision Song Contest. The latter begins in Basel in one week. The Swiss authorities are expecting cyberattacks at both events.
The authorities are preparing for possible cyberattacks at the Eurovision Song Contest (ESC) in Basel and the Women’s European Football Championship. According to Dirk Lindemann, Director of the Federal Office of Information Technology and Telecommunications (FOITT), DDoS attacks have doubled over the past year. These are overload attacks aimed at attracting media attention. Attackers attempt to paralyse services of the federal administration, particularly during major events.
The government is expecting targeted attacks during the ESC in May and the Women’s European Football Championship in July. The infrastructure is already being monitored around the clock. The FOITT is working closely with other authorities to fend off potential attacks in good time. It’s a sort of cat-and-mouse game. Staff, says Lindemann, take pride in successfully thwarting such threats.
The Glarus open-air assembly, which took place last weekend, had no such cyber concerns. As promised, I can now report on the outcome of the vote to extend the voting rights of Swiss citizens abroad. My colleague Domhnall O’Sullivan, who was present on Sunday, reports that the Glarus diaspora will be able to vote in both chambers of parliament in future.
Translated from German using DeepL/amva/ts
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