Advertisement

Banks 'claimed €10 billion extra tax rebate'

Author thumbnail
Banks 'claimed €10 billion extra tax rebate'
Photo: DPA

Banks have been ripping off German tax payers by claiming more tax rebate than they actually pay, it was reported on Wednesday.

Advertisement

The Süddeutsche newspaper said it had internal files from the Hypo-Vereinsbank (HVB) and the Swiss financial institute Sarasin showing how they were making a profit from tax statements.

Many other banks have been operating similar business models, the paper said, and said the financial authorities estimated that the total cost to the state was well over €10 billion.

A member of staff at the Munich-based HVB said that the scam involved doubling tax credits, exploiting a loophole in the law to get the tax authorities to refund capital gains tax twice.

It was clear within the bank that one was making money at the cost of the tax authorities, the source said.

The HVB has been conducting an internal investigation, the Süddeutsche said. It has admitted that it was taking part in such deals, alone and with business partners, between 2005 and 2008, amounting to around €200 million.

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also