(Reuters) -Bank of New York Mellon Corp, Germany's Warburg Group and Deutsche Bank (ETR:DBKGn) will pay 60 million euros ($59.85 million) to German tax authorities over the country's "cum-ex" tax scandal, the German lender said on Monday.
"Cum-ex" refers to a scheme under which banks and investors would swiftly trade shares of companies around their dividend payout day, blurring stock ownership and allowing multiple parties to falsely reclaim tax rebates on the dividends.
The payment covers tax liabilities of a fund called BC German Equity Special Fund, which was managed by a subsidiary of Warburg in 2009. The custodian bank was BHF Asset Servicing, German daily Handelsblatt reported on Sunday.
BHF was later acquired by BNY Mellon (NYSE:BK). Sal. Oppenheim, BHF's previous owner, was eventually absorbed by Deutsche Bank.
Deutsche Bank will contribute an amount of less than 10 million euros to the payment, Handelsblatt reported. A spokesperson for the bank said it would share in the payment, but did not give further details, citing a confidentiality agreement.
The final amounts may still be reduced in light of any third-party payments, the spokesperson added.
BNY Mellon said the Handelsblatt report contained inaccuracies and false misrepresentations.
The Warburg Group would pay in excess of 75% of the total amount, a source familiar with the matter said. The company did not immediately respond to requests for comment.
The scandal has blighted German political and financial circles, with lawmakers claiming it has cost taxpayers billions of euros.
A large number of banks have been searched by prosecutors investigating possible wrongdoing, with German branches of Barclays (LON:BARC), Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) among those raided in recent months.
Government officials say the investigation involves some 100 banks on four continents and at least 1,000 suspects.
($1 = 0.9985 euros)