The Work

July 31, 2009 12:21 PM

UBS, Government Reach Tentative Tax Agreement

Posted by Brian Baxter

Less than a month after U.S. district court judge Alan Gold adjourned proceedings in a federal court battle in Florida between Swiss banking giant UBS and the Justice Department, the two sides appear to have hashed out an agreement that will settle their long-running tax dispute out of court.

Sibling publication the Daily Business Review in Miami reports that "an agreement on major issues" had been reached to substantially resolve an IRS demand for the names of 52,000 U.S. citizens suspected of tax evasion for stashing assets in secret UBS accounts.

The progress in the negotiations between prosecutors and UBS executives and Swiss government officials was disclosed at a Friday morning hearing before Gold in Miami. The DBR reports that Gold then canceled a planned mini-trial scheduled to begin on Monday.

Switzerland is trying to protect the identities of UBS clients, citing the neutral European nation's centuries-old bank secrecy laws.

The DBR reports that Stuart Gibson, the government's lead prosecutor and senior counsel with the Justice Department's civil tax division, didn't offer any immediate details on the tentative tax accord but promised to supply more information at another status hearing scheduled for August 7. An evidentiary hearing was also reset for August 10.

Earlier this week a UBS client--represented by Baker & McKenzie's Douglas Tween--plead guilty to charges he filed a false and fraudulent tax return in 2007. Prosecutors have also charged two additional UBS account holders and bankers with crimes tied to hidden assets.

UBS is being represented by a team of lawyers from Wachtell, Lipton, Rosen & Katz, Cravath, Swaine & Moore, and Florida firm Stearns Weaver Miller Weissler Alhadeff & Sitterson.

Pillsbury Winthrop Shaw Pittman international trade practice head Stephan Becker and Palm Beach, Fla.-based solo practitioner John Dotterrer are representing Switzerland in the courtroom.

Related Posts

'Tough' Judge Adjourns UBS Tax Case Until August

DOJ: We're Not Dropping UBS Case . . . Yet

Another UBS Win for Wachtell?

DOJ Charges First UBS Client in Tax Case

Baker & McKenzie's UBS Memo Takes Center Stage at Tax Hearing

UBS Settlement Not A Complete Victory for Feds, Says Tax Lawyer

Federal Court Declares UBS Executive A Fugitive

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