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German prosecutors raid Maple Bank in tax case

Published 2015-09-25, 06:36 a/m
© Reuters. German prosecutors raid Maple Bank in tax case
CRDI
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FRANKFURT, Sept 25 (Reuters) - German prosecutors searched
offices and residences linked to Canadian lender Maple Bank this
week in a probe of serious tax evasion and money laundering
connected to dividend stripping, officials said on Friday.
Nearly 300 investigators searched 30 premises in several
German states on Wednesday in pursuit of evidence against 11
people thought to have illegally claimed more than 100 million
euros ($112 million) in tax paid using a strategy known as
dividend stripping or dividend arbitrage, Frankfurt prosecutors
said.
The prosecutors did not name the bank involved, however
Maple Bank confirmed the raids.
"Maple Bank has thoroughly supported the search operations
and has assured the investigating authorities of its further
cooperation," the bank said in a statement.
"The bank does not comment in principle on questions of tax
law and ongoing procedures," it said.
Previous cases of dividend stripping in Germany have
involved buying a stock just before losing rights to a dividend,
then selling it, taking advantage of a now-closed legal loophole
that allowed both buyer and seller to reclaim capital gains tax.
Other banks, including HVB CRDI.MI and HSH Nordbank
HSH.UL , have also become involved in investigations into the
dividend stripping strategy. The loophole that made the strategy
possible was not closed until 2012.
Germany's Sueddeutsche Zeitung said on Friday Maple Bank may
be the largest of the cases, citing sources close to the
investigation as saying the loss to tax authorities may total
around 450 million euros.
($1 = 0.8970 euros)

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