UBS case

Agreement between the United States of America and Switzerland on the request for information from the Internal Revenue Service regarding UBS

The Agreement on the request for information from the Internal Revenue Service (IRS) regarding UBS resolves the conflict over sovereignty with the USA along the lines provided for in the Tax Treaty. The negotiated solution settles the potential conflict between the respective legal orders of Switzerland and USA now that the USA agree to forgo unilateral measures to obtain information. The IRS submits a new treaty request to the Swiss Federal Tax Administration (SFTA) on the basis of the tax treaty currently in effect between the two nations. In return, Switzerland has undertaken to process the new treaty request within a year.

• On 30 April 2009, Switzerland files a brief with the United States District Court in Miami competent in the UBS case. In its brief, the federal government explains its legal position on the case and emphasizes that Switzerland's legal system, and thus its sovereignty, must be respected ( media release).
• In a response to the opinion of the U.S. authorities in the UBS case, Switzerland on 7 July 2009 confirms that Swiss law prohibits handing over client information. In its filing with the competent court in Miami, the government of Switzerland also points out that the necessary measures to implement Swiss law have been prepared ( media release).
• On 12 July 2009, the US Government and UBS, with the support of the Swiss Government, file a joint motion to stay the civil litigation pending in the United States District Court for the Southern District of Florida in Miami ( media release). Hereinafter, the Court stays the proceedings two other times in order to achieve a settlement.
• On 12 August 2009 the USA and Switzerland inform the judge that they have reached the out-of-court settlement in the US civil proceedings against UBS ( media release).
• On 19 August 2009 the agreement between the USA and Switzerland enters into force. In the UBS case, the United States will submit a new treaty request to Switzerland and will withdraw the John Doe summons that demands disclosure of the identity of 52,000 UBS account-holders. In return, Switzerland has undertaken to process the new treaty request, concerning approx. 4,450 accounts, within a year ( media release).
• On 19 August 2009 the Federal Council instructs the Federal Tax Administration (FTA) to set up a project organisation team to deal with the second complex request for administrative assistance from the USA and appoints Hans-Jörg Müllhaupt as project coordinator ( media release).
• On 31 August 2009 the Internal Revenue Service (IRS) files a request for administrative assistance with the Federal Tax Administration (FTA) concerning approximately 4,450 UBS accounts ( media release).
• On 17 November 2009 the Annex to Agreement is published in Switzerland's official compilation of legislation. The official assistance that Switzerland is providing to the US tax authorities in connection with the UBS affair is on track ( media release).
• Within the scope of a request for administrative assistance from the US tax authorities, the Federal Tax Administration (FTA) has already processed over 500 cases ( media release).
• On January 21, 2010, an UBS AG account holder wins a Federal Administrative Court case preventing data from being disclosed to the US Internal Revenue Service (IRS). This ruling involves a single test case on continued and severe tax evasion ( media release (pdf, 13 Kb)).
• Further to an analysis of the Federal Administrative Court's latest ruling, the Council decides on 27 January 2010 to continue talks with the USA. A possible second step would be to put the Treaty Request Agreement to Parliament for approval ( media release).

For the complete documentation see the pages in German, French or Italian.