5 Banks are investigated because of TAX FRAUD in PARIS
Investigations launched at the end of 2021 regarding a "CumCum" mechanism to evade the dividend tax , whose damage to the affected countries would amount to over 100 billion euros.
As the financial public prosecutor announced on Tuesday, preliminary investigations were being carried out against the houses to conceal tax evasion or tax fraud in connection with so-called cum-cum transactions.
In cum-cum transactions, securities owned by foreign shareholders are lent to domestic partners - such as banks - beyond the dividend record date. These can then be reimbursed for capital gains tax, which foreign shareholders cannot do.
Thanks for reading and watching.
