Suisse head apologises for ‘loss of trust’

ZURICH, APR 4 (REUTERS): Credit Suisse’s chairman apologised for taking the Swiss bank to the brink of bankruptcy, as he faced shareholder fury over the demise of the once proud flagship. The hastily arranged takeover by Zurich-based UBS, for which Switzerland invoked emergency legislation, bypassed Credit Suisse shareholders, who would otherwise have had a say, and all but wiped them out. Its final meeting of shareholders on Tuesday marks an ignominious end to the 167-year-old bank founded by Alfred Escher, a Swiss magnate affectionately dubbed King Alfred I, who helped to build the country’s railways and then the bank.

Protesters gathered outside the concert venue where the meeting took place, with some erecting a capsized boat to depict the bank’s demise. Inside, chairman Axel Lehmann issued an apology, saying he had run out of time to turn the bank around, despite his belief “until the beginning of the fateful week” that the it could survive. “I am truly sorry,” said Lehmann. “I apologise that we were no longer able to stem the loss of trust.”

After years of scandal and losses, Credit Suisse came to the brink of collapse before UBS rode to the rescue with a merger engineered and bankrolled by the Swiss authorities. “Until the end, we fought hard to find a solution. But ultimately, there were only two options: deal or bankruptcy. The merger had to go through,” said Lehmann.

He added that five board members would not stand for re-election. Shareholder advisory firm Ethos decried the “greed and incompetence of its managers” as well as pay that reached “unimaginable heights”, as it prepared to challenge top executives at the meeting.

“Shareholders have lost considerable amounts of money and thousands of jobs are on the line,” it said.

The meeting is the first time that Chairman Lehmann and Chief Executive Ulrich Koerner publicly addressed shareholders since the takeover. Credit Suisse

Tax rule recap: Some key changes have come into effect

NEW DELHI, APR 4

(IANS): With the new financial year 2023-24 having begun from April 1, several tax rule changes have come into effect.

Let’s have a look at some changes here:

The new income tax regime has become the default regime from April 1 onwards.

However, taxpayers have the option of choosing between the old and new tax regimes. The new tax regime’s standard deduction for taxable income exceeding Rs 15.5 lakh is Rs 52,500.

Tax rebate limit has been raised to Rs 7 lakh.

Raising the tax rebate limit to Rs 7 lakh from Rs 5 lakh means that the person whose income is less than Rs 7 lakh, need not invest any- thing to claim exemptions and the entire income would be tax-free irrespective of the quantum of investment made by such an individual.

However, there’s no change in standard deduction of Rs 50,000 provided to employees under the old tax regime. Changes effected in the new tax regime are: Rs 0-3 lakh - nil. Rs 3-6 lakh5%. Rs 6-9 lakh - 10 %. Rs 9-12 lakh - 15%. Rs 12-15 lakh - 20%. More than Rs 15 lakh - 30%.

The leave encashment for non government employees has been exempted up to a certain limit. This limit was Rs 3 lakh since 2002, which now has been raised to Rs 25 lakh.

From April 1, investments in debt mutual funds have become taxable. They will be taxed as short-term had been attempting to put the past behind it and restructure, before a shock triggered by the collapse of Silicon Valley Bank in the U.S. sent it into a spiral. After a run on deposits, the Swiss government turned to UBS, which agreed to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion), a fraction of its earlier market value.

The move angered not only shareholders but many in Switzerland. A survey by political research firm gfs. bern found a majority of Swiss did not support the deal. “The government’s use of emergency powers to push this deal through goes beyond legal and democratic norms,” said Dominik Gross of the Swiss Alliance of Development Organisations.

“Swiss taxpayers too are on the hook for billions of francs of junk investments and yet the government, (regulator) FINMA and the central bank have given little explanation about the state’s 9 billion (franc) loss guarantee to UBS.” capital gains now. This would mean that investors won’t be able to avail longterm tax gain benefits from these types of investments.

Even investment in Market Linked Debentures (MLDs) from April 1 onwards have become short term capital assets. Proceeds from life insurance premium over the annual premium of Rs 5 lakh have become taxable from April 1 onwards.

The maximum deposit limit for senior citizen savings schemes has been increased to Rs 30 lakh from Rs 15 lakh from 2023-24 onwards.

The maximum deposit limit for monthly income schemes has also been increased to Rs 9 lakh from Rs 4.5 lakh for single accounts, and Rs 15 lakh from Rs 7.5 lakh for joint accounts.