Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Swedish bank SEB hit with $575 million German tax demand

Published 12/15/2021, 09:03 AM
Updated 12/15/2021, 09:06 AM
© Reuters. FILE PHOTO: The logo for Nordic bank SEB Group is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo

By Johan Ahlander and Helena Soderpalm

STOCKHOLM (Reuters) - Swedish bank SEB said on Wednesday it had been hit with a 511 million euros ($575 million) tax demand from Germany and its head office in the country had been raided this week, both related to so-called cum-ex transactions.

The bank denied any wrongdoing and said it would appeal the demand.

"The review relates to transactions that were carried out before a change in Germany's tax legislation came into force in 2016. SEB is of the opinion that these were carried out in accordance with then prevailing rules," it said in a statement.

SEB said in a separate statement that Germany's public prosecutor had on Dec. 14 and 15 visited the bank's office in Frankfurt and requested information on alleged cum-ex transactions. The bank said it was cooperating with authorities.

"To the best of our knowledge, SEB in Germany has not offered or conducted transactions where the purpose is to recover tax that was not paid. We distance ourselves from that type of arrangement," it said, describing the cum-ex scandal.

The scandal is potentially Germany's biggest post-war fraud involving a share-trading scheme, which authorities say cost taxpayers billions of euros.

It is the subject of multiple investigations involving numerous financial institutions across Germany as the government tries to claw back money it says was stolen from the state.

German prosecutors in Cologne said in a statement a raid was conducted in Frankfurt, but declined to name the bank involved.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

SEB said it had, in accordance with current accounting rules, made no provisions at a group level related to the matter. It also said further demands could not be ruled out and that this could have a negative financial impact on the bank.

SEB said that, including the latest order, Germany's tax authority had demanded a total of 936 million euros relating to alleged ex-cum transactions, and that legal proceedings were expected to take several years.

SEB said last year the tax authority had requested its German subsidiary DSK Hyp AG to retroactively repay "transparently reported withholding tax" from more than five years ago, adding it strongly opposed the decision.

($1 = 0.8882 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.