German Commerzbank searched in connection with tax fraud scandal: report

Source: Xinhua| 2019-09-11 03:28:09|Editor: yan
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BERLIN, Sept. 10 (Xinhua) -- German authorities are widening their investigations into what might become the biggest tax scandal in German history, the German business newspaper Handelsblatt reported on Tuesday.

According to Handelsblatt, the head office of Commerzbank in Frankfurt was searched in connection to suspected tax fraud, in which the bank was believed to have sold blocks of shares used for illegal cum-ex trading.

The controversial cum-ex deals took advantage of a legal loophole that was closed in Germany in 2012 which enabled participants to obtain multiple refunds on a tax that was only paid once.

According to the latest figures from the German Ministry of Finance, 499 cases with a volume of 5.5 billion euros (6.7 billion U.S. dollars) linked to the cum-ex deals were currently under investigation.

However, the actual tax loss in Germany from cum-ex trading was estimated to be much higher, the German Finance Ministry noted.

On Tuesday, the Cologne public prosecutor´s office confirmed to Handelsblatt that "investigation measures are being carried out today as part of the complex of proceedings surrounding the cum-ex transactions," without giving further details.

Commerzbank declined to comment on "ongoing investigations" but was fully cooperating with the authorities. "It is in our own interest that this matter be resolved as quickly as possible", a spokesperson told Handelsblatt.

The business newspaper reported that German investigators suspected that Commerzbank, as a service provider, had not collected any capital taxes itself but had indirectly benefited from the business structure around cum-ex deals.

The first criminal trial against two British investment bankers in the context of the cum-ex deals was opened at the regional court in Bonn at the start of September. The two bankers are accused of having caused tax losses of more than 440 million euros.(1 euro = 1.10 U.S. dollars)

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