VP Bank pulls Swiss arm out of US programme on tax evasion

VP Bank AG

26/08/2014 08:53

ZURICH, Aug 26 (Reuters) - VP Bank  VPB.S  said on Tuesday 
it had withdrawn its Swiss arm from a U.S. programme to settle a 
tax dispute between Swiss banks and the United States, one of 
the first banks to publicly pull out of the scheme. 
    The Lichtenstein-based private bank was one of around 100 
banks to have come forward at the end of last year to work with 
U.S. authorities in the Swiss government-brokered programme. 
 ID:nL6N0K62II  
    VP Bank said it had now concluded that it no longer needed 
to take part in the programme. 
    "Thorough internal investigations and external expert 
opinions showed that the conditions for continued participation 
did not exist," the Liechtenstein-based bank said in a statement 
accompanying its half-year results.  
    "VP Bank therefore withdrew from the U.S. programme and the 
established provisions were reversed as of 30 June 2014." 
    A spokeswoman for the bank said it had set aside 3 million 
Swiss francs ($3.3 million) in provisions for the investigation. 
    About 80 of the roughly 100 Swiss banks that signed up for a 
deal with U.S. tax authorities could be fined less than they had 
feared for their role in helping wealthy Americans cheat on 
their taxes, but must widen their cooperation, a Swiss newspaper 
reported last month.  ID:nL6N0Q106M  
    The Swiss arm of Lichtenstein's LLB  LLB.S  is one of around 
a dozen Swiss banks facing a U.S. criminal investigation as part 
of the tax probe.  ID:nL6N0OJ14L  
 
(1 US dollar = 0.9145 Swiss franc) 
 
 (Reporting by Joshua Franklin and Oliver Hirt, editing by 
Louise Heavens) 
 ((joshua.franklin@thomsonreuters.com; +41583067007; Reuters 
Messaging: joshua.franklin.thomsonreuters.com@reuters.net)) 
 
Keywords: VP BANK SWITZERLAND/TAX