UBS Plans To Pay $1.4 Bln Bail In France Tax Evasion Probe : Report

Swiss banking giant UBS AG (UBS: Quote) is poised to pay a 1.1 billion euros or $1.4 billion security deposit in a French tax-evasion case as it challenges the allegations and bond demand, according to Bloomberg report citing a person familiar with the matter.

The company is reportedly proceeding with the payment due today after a Paris appeals court last week upheld a July order by French prosecutors. The deposit covers a potential criminal penalty.

UBS plans to appeal the bond demand at France’s highest court and it’s also challenging the judicial process, including the right to a fair trial, the bank said on September 22.

Quoting a spokeswoman for the Paris appeals court, the report indicated that any further appeal by UBS to France’s highest court, the Cour de Cassation, wouldn’t suspend execution of the bond order.

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