Geneva, July 12 (DPA) Authorities in the US and the Zurich-based bank UBS AG Sunday filed a motion with the backing of the Swiss government to have their court case on client data postponed to allow for further negotiations.
The request to delay the proceedings until August – if no agreement is reached – was filed as the clock ticked down to the start of the trial at 13:00 GMT Monday in Miami, Florida.
The US wants UBS to hand over data on about 52,000 US-tax-paying clients of the bank. The Swiss government has said it would seize the data, if the US court demanded its disclosure, to prevent any violations of the Alpine confederation’s banking confidentiality laws.
US and Swiss officials are trying to negotiate a solution to the quagmire, and the motion wants to allow them more time for talks.
“Further information is not available as the already ongoing settlement negotiations between the US and Swiss governments are confidential,” the Swiss Federal Department of Justice and Police said in a statement.
“The parties have agreed that any alternative resolution reached would necessarily include a provision requiring UBS to provide the Internal Revenue Service information on a significant number of individuals with UBS accounts,” the US Department of Justice said in a statement on its website.
“If an alternative resolution is not reached, the Department of Justice will continue to vigorously pursue enforcement of the summons through the court,” it read.
Reports in the Swiss media have suggested UBS might hand over some names, probably of clients who were involved in some form of tax fraud, if it could get a guarantee that the case would then be closed.
A spokesman for UBS declined to immediately comment saying the bank would release a statement later Sunday.
In February, one day after UBS admitted wrongdoings, handed over information on a reported 250 clients and agreed to pay 780 million dollars in fines, the US launched the new demand for more data. The bank’s employees are said to have helped wealthy clients evade paying their taxes.
Switzerland is in the process of renegotiating its double-taxation agreements with various governments, including the US, in order to get off the Organization for Economic Cooperation and Development’s so called “grey list” of countries without sufficient disclosure.
