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December 22, 2010updated 04 Apr 2017 3:51pm

Deutsche $553m payout settles US tax probe

Deutsche Bank has agreed to pay more than $553.6m to settle a case with the US Department of Justice and the Internal Revenue Service related to its involvement in fraudulent tax shelters. Its non-prosecution agreement concerns tax-oriented transactions between 1996 and 2002 when the German bank participated in about 15 tax shelters involving more than 2,100 clients through its US subsidiary Alex Brown Deutsche Banks $553.6m payout covers the total fees the bank collected during the period, including taxes and interest the IRS was unable to retrieve then, and a civil penalty exceeding $149m

By Eman El-shenawi

Deutsche Bank has agreed to pay more than $553.6m to settle a case with the US Department of Justice and the Internal Revenue Service related to its involvement in fraudulent tax shelters.

Its non-prosecution agreement concerns tax-oriented transactions between 1996 and 2002 when the German bank participated in about 15 tax shelters involving more than 2,100 clients through its US subsidiary Alex Brown.

Deutsche Bank’s $553.6m payout covers the total fees the bank collected during the period, including taxes and interest the IRS was unable to retrieve then, and a civil penalty exceeding $149m.

 

Deutsche prepared for payment

“Deutsche Bank is pleased that this investigation, which concerned transactions that ceased more than eight years ago, has come to a resolution,” the bank said in a statement.

The statement continued: “Since 2002, the bank has significantly strengthened its policies and procedures to ensure strict adherence to the law and the highest standards of ethical conduct.”

The bank said that the fine will not impact on current net income as it had previously taken “appropriate provisions” to pay the full amount.

 

 

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