CONTACT US

For any general inquiries, please fill in the following contact form:

Our websites never use cookies or other technologies such as pixel tags and web beacons. We only retain personal information when the contact section of our websites is filled. To proceed and get in touch with us through this format please read our Terms & Conditions, updated to be in line with the provisions of the GDPR, and tick this box to consent in us retaining the above information for contacting purposes only.

SUBMIT

Deutsche Bank to pay $95 million to end U.S. tax fraud case

Deutsche Bank to pay $95 million to end U.S. tax fraud case

By Nate Raymond and Jonathan Stempel | NEW YORK

Deutsche Bank AG (DBKGn.DE) agreed to pay $95 million to resolve a U.S. government lawsuit accusing the German bank of tax fraud for using "insolvent" shell companies to hide significant tax liabilities from the Internal Revenue Service in 2000.

Under the accord described in papers filed on Wednesday with the federal court in Manhattan, Deutsche Bank also admitted to trying to stick the shell companies with the tax bill for its then-new stake in drugmaker Bristol-Myers Squibb Co (BMY.N).

The settlement resolves a lawsuit filed in December 2014 that had sought to recoup more than $190 million in taxes, penalties and interest.

"The government, through this action and settlement, has made Deutsche Bank admit to its actions designed to avoid taxes," U.S. Attorney Preet Bharara in Manhattan said in a statement.

Deutsche Bank spokeswoman Amanda Williams said in a statement: "We are pleased to resolve this claim and put these events from more than 16 years ago behind us."

The settlement marks the latest step in Deutsche Bank's bid to resolve legal matters that in recent months caused investors to worry about its future, and whether it had enough capital.

Last month, Deutsche Bank reached a $7.2 billion settlement in principle to resolve a U.S. probe of its sale of toxic mortgage securities.

The tax case arose from Deutsche Bank's early 2000 acquisition of Charter Corp, which had been sitting on a large unrealized gain in Bristol-Myers.

According to settlement papers, the bank in May 2000 sold Charter to the shell companies, which then liquidated Charter and sold the Bristol-Myers shares back to the bank, triggering a more than $52 million tax liability.

But the shell companies lacked the funds to pay the taxes, and Deutsche Bank admitted that it knew or should have known this was the case, the papers said.

"Deutsche Bank engaged in the May 2000 transaction in order to avoid having to pay the built-in tax liability," the papers said.

The case is U.S. v Deutsche Bank AG et al, U.S. District Court, Southern District of New York, No. 14-09669.

(Reporting by Nate Raymond and Jonathan Stempel; in New York; Editing by David Gregorio and Dan Grebler)

http://www.reuters.com/article/us-deutsche-bank-lawsuit-idUSKBN14O26X

MORE NEWS

Watchdog berates PwC over 'misleading' BHS accounts

Watchdog berates PwC over 'misleading' BHS accounts
Regulator criticises accountant for signing off ‘unrealistic’ forecasts before sale of retailer.BHS’s accounts were misleading and featured ...

Serious Fraud Office suspends lawyer in charge of Unaoil investigation

Serious Fraud Office suspends lawyer in charge of Unaoil investigation
The senior lawyer in charge of an ongoing criminal investigation into Monaco-based oil firm Unaoil has been suspended. Tom Martin, the ...

Switzerland's ZKB to pay $98 million to end U.S. probe of tax evasion

Switzerland's ZKB to pay $98 million to end U.S. probe of tax evasion
NEW YORK (Reuters) - Swiss lender Zuercher Kantonalbank (ZKB) [ZKB.UL] has agreed to pay about $98 million to resolve a U.S. investigation ...

Who's behind the blog

Who's behind the blog

SOCIAL MEDIA