Deutsche Bank has agreed to pay $95m to settle a US government civil lawsuit that alleged the bank of using shell companies to dodge taxes.

The lawsuit was filed in 2014 after the bank’s acquisition of a company in 1999 that held stock whose sale would lead to taxable gains of over $100m. The government sought $190m, alleging that the German bank used shell companies to hide tens of millions of dollars in tax liabilities in 2000.

Manhattan US attorney Preet Bharara said:  “Using a web of shell companies and series of calculated transactions, Deutsche Bank sought to escape liability for tens of millions of dollars in taxes. 

“The Government, through this action and settlement, has made Deutsche Bank admit to its actions designed to avoid taxes and pay $95 million to the United States to account for this conduct.”

Deutsche Bank spokeswoman Amanda Williams said: "We are pleased to resolve this claim and put these events from more than 16 years ago behind us."

The latest settlement by Deutsche Bank comes soon after its $7.2bn in principle settlement with the US Department of Justice over the issuance and underwriting of residential mortgage-backed securities.

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