UBS Reaches $300 Million Settlement in Credit Suisse Tax Case

In a significant development, UBS Group AG has announced a $300 million settlement with the United States Department of Justice (DOJ), effectively resolving the long-standing tax dispute involving Credit Suisse. This agreement, finalized last Friday, covers all remaining Consumer Relief Obligations from the 2017 settlement.

Background of the Case

Credit Suisse had previously admitted guilt in 2014 for aiding U.S. taxpayers in hiding over $4 billion from the IRS, leading to a $2.6 billion payment. Despite this, investigations by the U.S. Senate Finance Committee revealed ongoing tax evasion assistance by the bank.

Financial Implications for UBS

As part of the settlement, UBS will also acknowledge a credit in its Non-core and Legacy unit. This credit arises from the release of a contingent liability established during the acquisition of Credit Suisse, marking a pivotal moment in the merger's financial adjustments.