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Investigation into German Tax Evasion through Dividends Stripping

|Approved Changes|Germany
Germany

According to recent reports, the Ministry of Finance of the German State of North-Rhine Westphalia (NRW) has identified over 100 German and foreign banks as part of a tax evasion investigation into dividends stripping through so-called cum/cum or cum-ex trades, which often involves temporarily loaning shares to a German bank or fund in order to obtain a tax credit or refund on a dividend paymen…

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