Ex-UBS staffer wants payout for exposing RM45b Swiss stash

AN EX-UBS Group AG employee turned whistle-blower may be getting closer to forcing reluctant French authorities to compensate her for helping them uncover about €9.6 billion (RM45.12 billion) that taxpayers stashed away in Swiss bank accounts.

Stephanie Gibaud (picture), who organised events for wealthy UBS France clients, got a boost last week when a court adviser said French tax authorities wrongly rejected her bid for compensation and should look at it again. It’s not the first time Gibaud has squared off with authorities reluctant to reward her. She previously requested €3.5 million for her troubles after helping with the criminal investigation against UBS. But judges decided in 2018 to give her just €4,500.

The advisor said her contribution helped recoup unpaid dues and also aided the parallel criminal investigation that culminated last year in penalties worth €1.8 billion for UBS. While he didn’t make any suggestion as to how much Gibaud should get, she considers her efforts should net her €3.5 million this time too.

“I was proactive. I always did what I could to help my country,” Gibaud told judges during a hearing last week at an administrative tribunal east of Paris. “This case robbed me of my entire life. I haven’t been able to work since my firing in 2012.”

Gibaud’s case underscores the difference between the French and US approach. Former high-flying banker Bradley Birkenfeld netted US$104 million (RM457.6 million) for blowing the whistle on how UBS helped wealthy Americans evade taxes. Birkenfeld earned his payout under the Dodd-Frank Act that authorises payouts of between 10% and 30% of fines collected in return for helping with prosecution of a case. By contrast, legislation allowing such rewards in France only entered into force in 2017.

That shouldn’t prevent tax authorities from rewarding contributions made prior to the law’s entry into force so long as the information provided was still in use after 2017, according to the court advisor.

With the court advisor now onboard, Gibaud’s lawyer, Antoine Reillac, is more hopeful this time around. He also highlighted that UBS France was ordered to face another trial for harassing Gibaud and a former audit manager who helped trigger the criminal probe.

“The tide is truly turning,” Reillac said in court last week. A ruling in the case is due on July 7. – Bloomberg