July 6, AtoZForex – UBS AG, a Swiss global financial services company with headquarters in Basel, Switzerland and the total value of assets worth of 943 billion CHF (2015) is providing financial services in over 50 countries. The things are not going well for the firm for the past half a year.
UBS shares dropped 6 percent after UBS tax revision
Apparently, U.S. – listed shares of UBS AG dropped 6 percent this Tuesday. This happened after Swiss tax authorities ordered the company to provide France with tax information.
The total drop of UBS’s stock this year accumulates to 36 percent. What is interesting, drops also appeared in many other European financial stocks. The Stoxx Europe 600 banks went down almost by 3 percent on Tuesday.
The order from Swiss tax authorities relates to UBS account numbers “pertaining to current and former French domiciled clients and is based on data from 2006 and 2008,” as it is commented by UBS AG. Additionally, the financial services company said the legitimacy of the request was “ambiguous” at best and that “the data and the justification received as part of the request lack the required specificity.”
UBS AG also is planning to get a consultation from the Swiss Federal Administrative Court in relation to the UBS tax revision request. What is more, the global financial services provider anticipates the similar order from the tax authorities in Switzerland regarding other countries tax information.
Swiss banks are to provide data to states officials annually
Countries all around the world are getting set up with tax evasion issues, as authorities are screening Swiss banks in France, U.S., and Germany. Earlier in 2014, French officials performed an investigation on UBS AG whether the company helped its clients to avoid taxes. The court ordered the bank to pay $1.2 billion in bail.
The financial services firm notes that starting from January 2017, the automatic exchange of tax-relevant client data between states will be put in effect in Switzerland. This change will oblige all the Swiss banks to provide data to French and other states’ officials annually.
See also: UBS market levels after EU Referendum
Think we missed something? Let us know in the comments section.