Swiss banks may lose $522m from U.K. tax accord

Moldy Swiss Cheese

Credit Suisse and other Swiss banks may lose most of the $522m guarantee payment they made to the U.K. government as part of a tax deal, the Swiss Bankers Association said.

Bloomberg News reports that payment, under an accord signed by Switzerland and the U.K. in October 2011, covered the failure by bank clients to disclose undeclared money in the past.

With fewer untaxed U.K. assets in Switzerland than previously expected, the banks may not be reimbursed by their British customers, the Basel-based association said in an e-mailed statement Friday.

'The possibility can therefore not be ruled out that either none or only a small part of the bank’s guarantee payment of 500 million francs ($522m) will be recovered', the association said.

Credit Suisse has already come out and said that it expects a negative after-tax impact of no more than $93.8m, which will be recognized in its 2Q13 results.

Hit the link below to access the complete Bloomberg article:

Swiss Banks May Lose $522 Million Payment From U.K. Tax Accord

Commerzbank Probed for Possible Swiss Reporting Breach

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