SAO PAULO Feb 6 Brazil has told UBS
it owes 2.4 billion reais ($1.2 billion) back taxes dating back
to the time when the Swiss lender owned an investment bank in
the country, O Estado de S. Paulo newspaper reported on
Wednesday, citing documents.
UBS, which owned Banco Pactual SA from 2006-09, said in its
annual financial report on Tuesday that BTG Pactual Group
was asking $1.2 billion compensation for the
liability, Estado said.
UBS sold the unit to Brazilian financier André Esteves and
his partners for $2.5 billion in 2009 - the transaction led to
the formation of BTG Pactual.
The Estado report came a week after the government gave the
go-ahead to UBS's purchase of local brokerage Link Corretora,
marking its return to Brazil - UBS had to sell Banco Pactual to
raise money to cover credit-related losses in the wake of the
global financial crisis of 2008.
Public relations executives working for the Brazil-based
unit of UBS and BTG Pactual would not comment on the report. The
finance ministry was not available to comment.
According to the UBS annual report, BTG Pactual warned
repeatedly of notifications by Brazilian authorities of the
overdue taxes, although the size of the debt could be
substantially lower, according to Estado.
UBS announced a 1.89 billion Swiss franc ($2.1 billion
fourth-quarter net loss on Tuesday, following a hefty fine for
rigging benchmark interest rates and compared with a forecast
for a 2.08 billion loss.