On 11 May 2016, the French tax authorities requested administrative
assistance from the Swiss Federal Tax Administration. The request was made
based on lists containing several thousand UBS Switzerland AG account numbers
which are or were held by persons presumed to be French residents for tax
purposes. The French tax authorities were asking for Switzerland to provide
names and dates of birth of the persons connected to the accounts as well as
the account balances. UBS Switzerland AG (which the Federal Administrative
Court (“FAC”) had granted party status in its judgment A-4974/2016 of
25 October 2016) and private individuals directly affected lodged appeals with
the FAC against the Federal Tax Administration’s final decisions, which were
issued on 9 February 2018.

With its judgment A-1488/2018 of 30 July 2018 the FAC has now ruled on
UBS Switzerland AG’s appeal and has concluded that one of the conditions has
not been met in this case, namely the prerequisite that the request for
administrative assistance must deliver grounds for assuming that the taxpayers
involved have failed to comply with their tax obligations; the Court holds that
simply having an account in Switzerland is not sufficient. The explanations
delivered by the French authorities were insufficient.

The Federal Administrative Court affirms the appeal to the extent as it
declares it admissible. The judgement can be appealed before the Swiss Federal
Court within the restrictions of Art. 84a of the Swiss Federal Supreme Court
Act of 17 June 2005 (i.e. if the legal question at stake is of fundamental
importance or if the case is particularly significant for other reasons).

Bär & Karrer successfully represented UBS
Switzerland AG before the Federal Administrative Court. The team included
Andreas Länzlinger and Roman Huber (both Litigation).

On 11 May 2016, the French tax authorities requested administrative
assistance from the Swiss Federal Tax Administration. The request was made
based on lists containing several thousand UBS Switzerland AG account numbers
which are or were held by persons presumed to be French residents for tax
purposes. The French tax authorities were asking for Switzerland to provide
names and dates of birth of the persons connected to the accounts as well as
the account balances. UBS Switzerland AG (which the Federal Administrative
Court (“FAC”) had granted party status in its judgment A-4974/2016 of
25 October 2016) and private individuals directly affected lodged appeals with
the FAC against the Federal Tax Administration’s final decisions, which were
issued on 9 February 2018.

With its judgment A-1488/2018 of 30 July 2018 the FAC has now ruled on
UBS Switzerland AG’s appeal and has concluded that one of the conditions has
not been met in this case, namely the prerequisite that the request for
administrative assistance must deliver grounds for assuming that the taxpayers
involved have failed to comply with their tax obligations; the Court holds that
simply having an account in Switzerland is not sufficient. The explanations
delivered by the French authorities were insufficient.

The Federal Administrative Court affirms the appeal to the extent as it
declares it admissible. The judgement can be appealed before the Swiss Federal
Court within the restrictions of Art. 84a of the Swiss Federal Supreme Court
Act of 17 June 2005 (i.e. if the legal question at stake is of fundamental
importance or if the case is particularly significant for other reasons).

Bär & Karrer successfully represented UBS
Switzerland AG before the Federal Administrative Court. The team included
Andreas Länzlinger and Roman Huber (both Litigation).

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