U.S. government seeks $190m from Deutsche Bank

Deutsche Bank - External

Deutsche Bank was accused of using underfunded shell companies to evade U.S. taxes in a government lawsuit seeking $190m in taxes, penalties and interest.

Bloomberg News reports that the bank has been grappling with mounting legal costs while seeking to resolve international probes, including investigations into alleged market rigging.

Deutsche Bank bought a corporation in 1999 that held stock whose sale would trigger more than $100m in taxable gains because it rose in value, according to the government complaint in Manhattan federal court.

To avoid paying the taxes, Deutsche Bank made a deal with a firm that created three shell companies: BMY Acquisition Corp., BMY Acquisition LLC and BMY Statutory Trust. The three companies served as an underfunded special-purpose vehicle “with no function other than to be stuck with a tax bill that it could never pay,” according to the U.S government.

To access the complete Bloomberg News article hit the link below:

Deutsche Bank Sued by U.S. Over Alleged Tax Scheme

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