German lender HSH Nordbank has reached an agreement with Cologne prosecutors to settle a tax investigation.
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Under the settlement, the bank has agreed to pay about EUR22m ($24m) to settle a tax probe.
News about the settlement was first reported by newspaper Sueddeutsche Zeitung and broadcasting networks NDR and WDR.
The investigation found that the bank helped rich clients dodge taxes by setting up offshore shell companies in Luxembourg to hide assets from tax authorities.
Sources familiar with the matter told Luxemburger Wort that HSH Nordbank approached the prosecutor’s office to report the activities of its former Luxembourg subsidiary.
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By GlobalDataMedia sources said that the bank assisted clients hide assets via its Luxembourg branch, by setting up dummy companies in Panama between 2005 and 2011, when the subsidiary was sold.
Also, German Hypo-Vereinsbank (HVB) has reached a EUR20m settlement for helping clients evade taxes through Luxembourg.
