Switzerland says it will keep UBS data from US
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NEW YORK - Switzerland yesterday said it would seize UBS AG data to prevent the US Justice Department from pursuing a US court order seeking the identities of 52,000 American account holders in a crackdown on tax evaders.
The assertion came in court papers Tuesday in federal court in Miami, where the Justice Department sued UBS on Feb. 19, a day after the bank avoided US prosecution for helping wealthy Americans to evade taxes.
The US effort to enforce a summons seeking the names would force UBS to violate Swiss laws, the filing said.
The Swiss government “will use its legal authority to ensure that the bank cannot be pressured to transmit the information illegally, including if necessary by issuing an order taking effective control of the data at UBS that is the subject of the summons,’’ the documents said.
In an order yesterday, US District Judge Alan Gold told the Justice Department to respond by Sunday to the Swiss filing. Gold said the United States should explain “how far it intends to proceed by way of request for enforcement’’ if he grants the petition and the Swiss “prevent or otherwise prohibit UBS from complying.’’
UBS agreed Feb. 18 to pay $780 million in penalties, admitted it helped taxpayers hide money, and gave the Internal Revenue Service more than 250 clients’ names. The bank and Switzerland have since argued that the US suit is a threat to Swiss sovereignty. Gold will hold an evidentiary hearing Monday.
