|Swiss Banker Avoids German Tax Charges|
The German authorities have agreed to drop a tax fraud investigation against Eric Sarasin, former Deputy Chief Executive of the Swiss bank J. Safra Sarasin, in return for a payment of between EUR100,000 and EUR300,000.
The investigation began in October 2014, when prosecutors in Cologne decided that a large-scale 'Cum/Ex' dividend fraud was being perpetrated against the German tax office. The technique enables two parties to claim withholding tax refunds on a single dividend payment.
Acting on a request from Cologne, the Zurich police in late 2014 raided various banks and law firms, including Safra Sarasin. At the same time Eric Sarasin resigned his position in order to organise his defence. He still denies any involvement in the Cum/Ex operation, and his spokesman emphasised that the payment to Germany is not a fine and does not imply any admission of guilt.
Last month J. Safra Sarasin agreed to pay the US Department of Justice a penalty of USD85.8 million for helping its American clients evade tax.
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Published on our website on Jan.14, 2016