Deutsche Bank Sued by U.S. for Alleged Tax Scheme (Earlier)
2014-12-08 22:10:13.548 GMT
By Jim Silver and Patricia Hurtado
Dec. 8 (Bloomberg) -- U.S. says bank used underfunded shell
companies to evade taxes, seeks $190m in taxes, penalties and
interest in lawsuit filed in Manhattan federal court.
* Deutsche Bank bought a corporation in 1999 that held stock
whose sale would trigger more than $100m in taxable gains
because it rose in value, according to the government
* To avoid paying the taxes, bank made deal with firm that
created three shell companies, which served as underfunded
special-purpose vehicle “with no function other than to be
stuck with a tax bill that it could never pay,” according
to the U.S.
* “Deutsche Bank tried to make its potential tax liabilities
disappear,” Manhattan U.S. Attorney Preet Bharara said in a
statement
* “We fully addressed the government’s concerns about this
14-year-old transaction in a 2009 agreement with the IRS,”
Rene Calabro, a spokeswoman in New York for Deutsche Bank,
said in an e-mailed statement
* “In connection with that agreement they abandoned their
theory that DB was liable for these taxes, and while it
is not clear to us why we are being pursued again for
the same taxes, we plan to again defend vigorously
against these claims,” Calabro said
* “In connection with that agreement they abandoned their
theory that DB was liable for these taxes, and while it
is not clear to us why we are being pursued again for
the same taxes, we plan to again defend vigorously
against these claims,” Calabro said</li></ul>
* NOTE: Earlier, Deutsche Bank Libor Settlement Said Not to
Come Before March
Link to full story: NSN NGA99K6KLVR7<GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporters on this story:
Jim Silver in New York at +1-212-617-7342 or
jsilver@bloomberg.net;
Patricia Hurtado in Federal Court in Manhattan at
+1-212-732-9245 or
pathurtado@bloomberg.net
To contact the editors responsible for this story:
Andrea Snyder at +1-202-624-1831 or
asnyder5@bloomberg.net
Jay Miller
2014-12-08 22:10:13.548 GMT
By Jim Silver and Patricia Hurtado
Dec. 8 (Bloomberg) -- U.S. says bank used underfunded shell
companies to evade taxes, seeks $190m in taxes, penalties and
interest in lawsuit filed in Manhattan federal court.
* Deutsche Bank bought a corporation in 1999 that held stock
whose sale would trigger more than $100m in taxable gains
because it rose in value, according to the government
* To avoid paying the taxes, bank made deal with firm that
created three shell companies, which served as underfunded
special-purpose vehicle “with no function other than to be
stuck with a tax bill that it could never pay,” according
to the U.S.
* “Deutsche Bank tried to make its potential tax liabilities
disappear,” Manhattan U.S. Attorney Preet Bharara said in a
statement
* “We fully addressed the government’s concerns about this
14-year-old transaction in a 2009 agreement with the IRS,”
Rene Calabro, a spokeswoman in New York for Deutsche Bank,
said in an e-mailed statement
* “In connection with that agreement they abandoned their
theory that DB was liable for these taxes, and while it
is not clear to us why we are being pursued again for
the same taxes, we plan to again defend vigorously
against these claims,” Calabro said
* “In connection with that agreement they abandoned their
theory that DB was liable for these taxes, and while it
is not clear to us why we are being pursued again for
the same taxes, we plan to again defend vigorously
against these claims,” Calabro said</li></ul>
* NOTE: Earlier, Deutsche Bank Libor Settlement Said Not to
Come Before March
Link to full story: NSN NGA99K6KLVR7<GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporters on this story:
Jim Silver in New York at +1-212-617-7342 or
jsilver@bloomberg.net;
Patricia Hurtado in Federal Court in Manhattan at
+1-212-732-9245 or
pathurtado@bloomberg.net
To contact the editors responsible for this story:
Andrea Snyder at +1-202-624-1831 or
asnyder5@bloomberg.net
Jay Miller