Dividend case rumbles on

In Germany there are signs that banks may be coming closer to the day when they pay up for their involvement in dividend tax manipulation. According to recent reports, German banks could be on the hook for 610m euros.
The case involves trades which enabled some international investors to benefit from tax breaks intended for German shareholders. In the case of cum-ex trades, more than one investor was able to claim the tax break on the same shares. Deutsche Bank has found itself tied up in the scandal. Whilst it maintains that it did not undertake any of the trades itself, it appears to have relationships with firms that did. And press reports suggest there are links to senior figures within the bank.
More generally, the use of short-term trades to minimise tax on dividends looks likely to attract greater scrutiny. One to watch.

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