European authorities are known for their sharp vigilance and tough stance when it comes to tax evasion and fraud. UBS, Switzerland's largest bank, is still dealing with the consequences of a tax evasion dispute that arose in 2021. On Wednesday, November 15, the French Court of Cassation reaffirmed the 2021 decision, which found UBS guilty of "aggravated tax fraud and illegal banking solicitation." In December 2021, the Paris Court of Appeal ordered UBS to pay a total of €1.8 billion, with a €1 billion confiscation and €800 million in a civil damages payment. Adding to the bank's woes was a fine of €3.75 million. The ruling stems from the bank's activities between 2004 and 2012 when UBS was allegedly persuading rich French taxpayers to open undeclared accounts in Switzerland. Despite these allegations, UBS's management has consistently denied any wrongdoing. However, France's supreme court partially annulled the confiscation of €1 billion but upheld the fundamental ruling. The damages compensation will also be reviewed. A third trial is expected to take place in the coming months to reassess the fines and compensation amounts.UBS France, the bank's French subsidiary, has not escaped legal scrutiny either. It was convicted of complicity in concealing tax fraud and fined €1.875 million. Unlike its parent company, UBS France did not contest the court's decision. Additionally, four former UBS France employees received suspended prison sentences ranging from six months to a year and fines between €200,000 and €300,000.
