LLB Vaduz resolves US taxation dispute Vaduz, 30 July 2013. Liechtensteinische Landesbank AG, Vaduz, has reached a definitive solution to the US taxation dispute with the US authorities. Following months of negotiations, a Non-Prosecution Agreement has now been signed by both parties. The US has agreed to end its investigations into LLB Vaduz, which in return will pay a sum of USD 23.8 million. The bank has already set aside provisions amounting to this sum. The agreement also includes an explicit agreement by the US not to impose a fine or criminal penalty on LLB Vaduz. This solution marks a definitive end to the US taxation issue for LLB Vaduz. The US authorities had been investigating whether clients of LLB Vaduz had violated US taxation law and securities regulations, and whether the Bank had been involved. Intensive negotiations between LLB and the US authorities have been taking place in recent months. No prosecution LLB Vaduz, the U.S. Department of Justice and the Attorney's Office for the Southern District of New York signed a Non-Prosecution Agreement. This agreement marks an end to the investigations into LLB Vaduz and means that no further legal steps will be taken against LLB Vaduz. As part of the agreement reached, LLB Vaduz undertakes to pay the gross profit of USD 16.3 million earned from 2001 to 2012 on transactions with undeclared assets held by US clients. Of that amount, USD 15.9 million will be paid to the US authorities and USD 0.4 million to the Liechtenstein tax authorities for their costs in connection with the US requests. In addition, LLB Vaduz will compensate the US with a payment of USD 7.5 million for lost tax revenue during the same period. No penalty In the Non-Prosecution Agreement, the US authorities explicitly undertake not to impose a fine or penalty on LLB Vaduz beyond the payments for gross profit and lost tax revenue. What is more, they acknowledge that the Bank voluntarily took measures even before the investigations began, with a view to putting a stop to any US relationships without the corresponding documentation. Since the end of 2008, for example, LLB has only accepted as its clients US persons who disclose their assets to the US tax authorities using Form W-9. Relationships with persons who do not meet this criterion were gradually brought to an end. Payment covered by provisions Based on the information currently available, the LLB Group set aside total provisions of CHF 47.2 million in its 2012 annual results and 2013 interim results for the US taxation issue. The portion of the provisions set aside for LLB Vaduz will now be eliminated. The definitive solution reached with the Non-Prosecution Agreement corresponds to the amount reserved for LLB Vaduz, which means that the solution will not have any further impact on the income statement. The LLB Group will now continue negotiations with the US authorities to find a definitive solution for LLB (Switzerland) Ltd. and swisspartners Investment Network AG. Corresponding provisions for both companies were made by the LLB Group in the 2013 interim results respectively the 2012 annual results. ã??ã?? Important dates *Thursday, 29 August 2013, 2013 interim results *Tuesday, 25 March 2014, 2013 annual results *Friday, 9 May 2014, 22nd General Meeting of Shareholders ã??ã?? Brief portrait Liechtensteinische Landesbank AG (LLB) is the longest established financial institute in the Principality of Liechtenstein. The Principality of Liechtenstein holds the majority of the company's share capital. The LLB's shares are listed on the SIX Swiss Exchange (symbol: LLB). The LLB Group offers its clients comprehensive wealth management services, as a universal bank, in private banking, asset management and fund services. With about 1'000 employees, the Group is represented in Liechtenstein, Switzerland, Austria and the United Arab Emirates (Abu Dhabi and Dubai). As per 30 June 2013, the LLB Group managed client assets totalling CHF 50.5 billion. ã?? Contact Liechtensteinische Landesbank AG Dr. Cyrill Sele, Head Group Corporate Communications & General Secretary Telephone +423 236 82 09, fax +423 236 87 71 E-mail email@example.com, Internet www.llb.li Yours sincerely Liechtensteinische Landesbank Aktiengesellschaft Dr. Cyrill Sele Head Group Corporate Communications & General Secretary Liechtensteinische Landesbank Aktiengesellschaft Staedtle 44, P. O. Box 384, 9490 Vaduz, Liechtenstein Telephone +423 236 82 09 Fax +423 236 87 71 E-mail firstname.lastname@example.org Internet http://www.llb.li This message is exclusively for the person addressed or their representative. Any form of the unauthorized use, publication, reproduction, copying or disclosure of the content of this e-mail is not permitted. If you are not the intended recipient of this message and its contents, please notify this sender immediately and delete this message and all its attachments subsequently. LLB_MC_USA Provider Channel Contact Tensid Ltd., Switzerland newsbox.ch Provider/Channel related enquiries www.tensid.ch www.newsbox.ch email@example.com +41 41 763 00 50
LLB Vaduz resolves US taxation dispute
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