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UBS bail decision in tax investigation set for Sept. 22

PARIS (Reuters) - A French appeals court will rule on Sept. 22 whether Swissbank UBS must post bail of 1.1 billion euros (882.37 million pounds) in an investigation of charges that it helped wealthy French customers avoid tax, the bank's lawyer said on Monday.

French judges have requested the payment, saying it reflects the size of the fine UBS could pay if it is found guilty. The Zurich-based bank was put under formal investigation in July on allegations it laundered the proceeds of tax evasion.

The UBS lawyer, Denis Chemla, said the bail demand was "without legal basis" and contested the way it was calculated. The amount came to 42.6 percent of UBS's profits after tax last year and 2.8 percent of its capital, Chemla said.

UBS, which appealed in July, had already paid a much smaller 2.875 million-euro guarantee in the case. That was raised by judges in July to 1.1 billion to be paid by Sept. 30, and in one single transfer.

Authorities in France, one of the few countries to levy deposit guarantees from corporations in criminal cases, has defended the surety for UBS, which is also in the crosshairs in Germany and Belgium for how it dealt with wealthy clients and tax.


(Reporting By Chine Labbe; Writing by John Irish; Editing by Larry King)