Here’s Why A Formal Tax Investigation In France Is Very Bad News For UBS

UBS AG (NYSE:UBS) continues to face increased pressure from tax authorities in France with the largest Swiss bank likely to face a full-fledged criminal investigation for the role of its French unit in helping more than 350 clients evade taxes by rerouting their undeclared assets to Switzerland. [1] UBS has been under scrutiny from the taxman in France since last April when French authorities searched its offices in Strasbourg, Lyon and Bordeaux in relation to money laundering and tax evasion assistance charges leveled against the bank. [2] A criminal investigation would be bad for UBS AG (NYSE:UBS) on both the short-term and long-term fronts. The short-term implication…