UPDATE 3-U.S. soon to end tax case against UBS

* U.S. to withdraw “John Doe” summons for names

* Swiss govt in talks with U.S. over final data handover

* UBS sees final resolution of the matter by October
(Adds UBS comment)

WASHINGTON/ZURICH, Aug 26 (BestGrowthStock) – UBS (UBSN.VX: ) (UBS.N: )
moved a step closer to putting its U.S. tax-evasion scandal
behind it as U.S. authorities said they will soon close a tax
fraud case that threatened to bring the banking giant to its

The U.S. government agreed last August to drop tax-evasion
charges against UBS after Switzerland promised it would
transfer the details of around 4,450 clients that UBS had
helped to dodge taxes. The transfer lifted the veil on
Switzerland’s cherished tradition of banking secrecy.

Swiss tax authorities had examined the clients’ accounts by
Thursday’s deadline, and talks were being held with the United
States over the final handover of information, the Swiss
Finance Ministry said on Thursday.

Washington sought to obtain the names through a so-called
John Doe summons, which describes the types of clients at the
bank based on their actions but without specific names. A tax
U.S. official said on Thursday the U.S. government has received
2,000 accounts so far.

“Based on information received to date and assurances by
the Swiss government, we anticipate being in a position to
withdraw the John Doe summons this fall,” Internal Revenue
Service spokesman Bruce Friedland said in a statement.

UBS, in a statement, said it was “pleased” to learn the
Swiss authorities would transfer the names and meet terms of
the U.S. agreement.

“UBS expects that implementation of the treaty will be
completed in the coming weeks, although the exact date of
completion is not yet defined,” UBS said.

“Given the progress made so far in implementing the
agreements between all parties involved, UBS remains confident
that a final resolution of the U.S. case will be achieved in

The deal has hung in the balance until Switzerland’s
parliament gave its support in June and ruled out a referendum
on the issue. That approval removed the last obstacle to UBS
Chief Executive Oswald Gruebel’s quest to revive the fortunes
of the bank.

Gruebel had been hauled out of retirement by the bank after
it was bailed out by the Swiss government. [ID:nLDE65H182]

UBS’s wealthy clients left in droves, with the threat of
renewed legal action looming if Switzerland failed to deliver
on its promises to release the account names within a year of
the U.S. deal being struck.

Gruebel has assured investors that client cash should stop
bleeding from UBS by the end of 2010, solving the bank’s final
problem after it reported a second-quarter profit (Read more your timing to make a profit.) of 2 billion
Swiss francs ($1.9 billion) — its third straight quarterly
profit under Gruebel following two years of heavy losses amid
the financial crisis.

Switzerland’s banks should not run into further trouble
with the U.S. taxman now that the damaging dispute with UBS has
been cleared up, Switzerland’s top tax diplomat, Michael
Ambuehl, said earlier this month. [ID:nLDE67J0IX]

$1 = 1.025 Swiss francs
(Reporting by Jason Rhodes and Kim Dixon; Additional reporting
by Joe Giannone in New York; Editing by Will Waterman and
Matthew Lewis)

UPDATE 3-U.S. soon to end tax case against UBS