By Choi Kyong-ae
UBS AG's Seoul branch is being investigated over allegations of tax evasion, a person familiar with the matter said Wednesday.
"The National Tax Service (NTS) began looking into UBS operations in Seoul late last year as the company is suspected of derivatives transactions that broke local laws," the person in the financial industry said by telephone.
UBS, the largest Swiss bank, is suspected of stashing away proceeds worth about 50 billion won ($46 million) from its investments in the derivatives products, he said without elaborating further.
When contacted by The Korea Times, UBS Branch Manager Teo Kim flatly denied the allegations.
"It is true that a probe is underway. But it is a regular one conducted by the tax agency every five years," he said. "There seems be a difference in interpretation (of the company's transactions)."
The tax agency declined to comment.
The NTS has been stepping up efforts since last year to collect taxes from companies and high-wealth individuals to help the Park Geun-hye government fund its costly welfare policies during her five-year term that ends in February 2018.
UBS is not alone. Multinational financial companies have been investigated by the tax or financial authorities for unfair practices.
Last year, the Seoul branches of Credit Suisse, Merrill Lynch Securities and Goldman Sachs were ordered by the NTS to pay a combined 75 billion won in fines for illegal transactions.
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"The National Tax Service (NTS) began looking into UBS operations in Seoul late last year as the company is suspected of derivatives transactions that broke local laws," the person in the financial industry said by telephone.
UBS, the largest Swiss bank, is suspected of stashing away proceeds worth about 50 billion won ($46 million) from its investments in the derivatives products, he said without elaborating further.
When contacted by The Korea Times, UBS Branch Manager Teo Kim flatly denied the allegations.
"It is true that a probe is underway. But it is a regular one conducted by the tax agency every five years," he said. "There seems be a difference in interpretation (of the company's transactions)."
The tax agency declined to comment.
The NTS has been stepping up efforts since last year to collect taxes from companies and high-wealth individuals to help the Park Geun-hye government fund its costly welfare policies during her five-year term that ends in February 2018.
UBS is not alone. Multinational financial companies have been investigated by the tax or financial authorities for unfair practices.
Last year, the Seoul branches of Credit Suisse, Merrill Lynch Securities and Goldman Sachs were ordered by the NTS to pay a combined 75 billion won in fines for illegal transactions.
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