Switzerland’s lower parliament rejected a bill
to allow Switzerland to fulfil a commitment to pass onto US tax
authorities the names of 4,450 US client accounts that UBS is
holding in Switzerland.
The vote dealt a blow to UBS’s efforts to
clear up its tax evasion deadlock with US authorities which helped
fuel an exodus of client assets and staff from its wealth
management business.
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UBS shed CHF33.2bn (£30bn) in client assets in
the 2009 fourth quarter, taking its outflows in fiscal 2009 to
CHF101bn, 6.3% of 2008 year-end assets. The 2009 full year results
suffered a severe 16% fall in assets under management to
$1.59trn.
The US Internal Revenue Service has hinted it
may relaunch its case against UBS if the Swiss lender does not hand
over the names of the 4,450 US clients by August.
The Swiss parliament’s upper house is expected
to agree to the US-Swiss government agreement regarding the
exchange of US taxpayer information but the agreement must be
passed by the Swiss parliament before it adjourns on 18 June.
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By GlobalData
