US Settles Tax Evasion Suit With UBS, Swiss

Swiss bank UBS AG has agreed to a settlement with the US to resolve a lengthy tax evasion probe, the Wall Street Journal reports. The details are currently under wraps, as the final documents await signatures. UBS will likely hand the IRS the names of  8,000 to 10,000 clients, analysts predict. The Swiss government had fought hard against the suit, on the basis of Swiss bank privacy.

How the hand-off will happen remains a key component of the settlement: UBS may give client names to the Swiss government, which would in turn tell them that they can appeal in Switzerland, say lawyers representing UBS clients. A host of clients, sensing an impending settlement, have already come forward under the voluntary disclosure program to report their unpaid income tax. In February, UBS agreed to pay $780 million and turn over 250 names in connection with a criminal probe. (More UBS stories.)