Deutsche Bank was aware of the tax fraud scheme

Deutsche Bank's tax "maneuvers" were known to senior management, and they realized they were cheating on the government. This has revealed the auditors and investigators in the case of the tax frauds of the bank.

According to a report by Reuters, the German bank has misled the authorities in believing that certain shares had several different holders. Anyone who owns the specific shares will then be entitled to a dividend and, above all, a tax relief.

According to the tax authorities in Germany, other world big companies such as Santander and Macquarie are involved in the scheme. Fraud, which costs the German government 5.6 billion euros ($ 6.36 billion).

An internal report by Deutsche Bank, prepared by Freshfields Law Firm, reveals the information that senior management at the bank was aware of what was happening. This has lasted for years. The scheme was successful from 2006 to 2011.

Two traders, Simon Pearson and Joe Penna, seem to have been the key figures that triggered the plan initially and dragged along with others. In order to get their plan, however, Deutsche Bank had to give money to companies with which to do the transactions in question, in return for them to obtain tax preferences.

Reuters argues that Pearson and Penna have been intermediaries in these deals. They have worked with companies who wanted to invest in the scheme, including the departments of the bank that gave the loans. For example, Deutsche Bank grants Seriva EUR 5.8 million per transaction, and then tax relief can be claimed. According to Reuters, people in high positions in the bank and in Seriva knew that this would be a tax evasion.

A very bad period for the German bank. Desperately trying to find a way out, they were also involved in the scandal with Danske Bank, who are accused of money laundering.

Source: Finance Magnates

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