Swiss nod to UBS-US tax deal

Switzerland’s parliament backed a Swiss-US tax treaty crucial to the future of UBS, ending months of uncertainty over the deal and paving the way for renewed recovery at the Swiss bank. 

The two houses of parliament agreed not to stage a referendum on the issue after crisis talks on Thursday, meaning Swiss tax authorities should be able hand over on time to US counterparts the accounts of 4,450 UBS clients that the country’s biggest bank helped to dodge taxes. 

Berne and Washington cut the deal last August to end a damaging tax case against UBS, but its wealthy clients continued to leave in droves as the threat of further legal action loomed if Switzerland failed to deliver on its promises within a year. 

“UBS is finally off the hook and will regain ground in its wealth management business,” said Sarasin analyst Rainer Skierka.