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Prosecutors Search Deutsche Bank Head Offices in Tax Fraud Probe

Aarti Maharaj | June 10, 2015

Prosecutors have raided  Deutsche Bank’s headquarters in Frankfurt this week after suspicions of tax fraud relating to client securities transactions surfaced. The Financial Times reports that about 30 plain-clothes officers were part of the search, which began on Tuesday morning.

The alleged transactions involved “dividend stripping,” a strategy used to reduce  tax burdens, where an investor obtains tax free dividends by investing in securities during a specific time to incur a short-term capital loss. In recent years, Germany has made significant moves to crackdown on tax evasion schemes by working with U.S.  and Swiss authorities—while this loophole is now closed, significant legal issues still exist.  

The German bank, has been caught in a swirl of regulatory problems. Earlier this week, Deutsche’s Chief Executives Anshu Jain and and Jurgen...

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