Law enforcement officials raided Deutsche Bank’s headquarters early Tuesday on suspicions of tax fraud related to customer securities transactions, bank officials confirmed.
“Today, offices of Deutsche Bank in Frankfurt are being searched on behalf of the Wiesbaden Public Prosecutor’s Office. The search is related to an investigation into securities transactions by clients,” the bank said in a statement. “Employees of the Bank are not accused of wrongdoing.”
The bank, and at least three others in Germany, have come under suspicion for taking advantage of a tax loophole – now closed – in a practice known as “cum/ex” or “dividend-stripping.” It occurs when a stock is bought then sold, and then used to obtain a rebate on capital gains tax withholding that was actually never paid, according to the Frankfurter Allgemeine Zeitung, a German business daily.
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