Pictet settles US tax dispute with payment of USD 122.9 million
Published: Monday, Dec 4th 2023, 18:50
Updated At: Monday, Dec 4th 2023, 18:52
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Banque Pictet can put the tax dispute with the USA behind it. The Geneva-based private bank has reached a final settlement with the US Department of Justice (DOJ) and will pay a total of 122.9 million US dollars.
Pictet Bank has reached a settlement with the DOJ. The settlement relates to an investigation into services provided by Pictet's private banking unit to US taxable clients from 2008 to 2014, according to a statement issued on Monday evening. As part of a three-year deferred prosecution agreement, Pictet will now pay a total of 122.9 million US dollars (around 106.8 million Swiss francs), of which 38.9 million dollars is a fine.
The amount is covered by general provisions and profits of the Group's Swiss bank, Pictet writes further. This settlement is the result of Pictet's full cooperation with the US authorities in compliance with Swiss law. The DOJ also emphasized this positively in the settlement agreement.
Misconduct admitted
The private bank also admitted that it had actively helped US taxpayers to hide a total of more than 5.6 billion dollars from the US tax authorities in 1637 secret bank accounts in Switzerland and elsewhere between 2008 and 2014, according to a DOJ statement. As a result, a total of around 50.6 million dollars in US taxes were evaded.
In return, the bank will pay a total of almost 123 million dollars in restitution, withholding fees and a fine. It also undertakes to cooperate fully with the investigations in connection with these secret accounts.
Today's decision is one of a series of cases brought by the DOJ in connection with its ongoing investigation since 2008 into foreign banks' facilitation of offshore tax evasion in the United States.
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