Tuesday 27 August 2019 3:33 pm

Deutsche Boerse offices raided in German tax probe

Deutsche Boerse, the operator for Frankfurt’s stock exchange, has been searched as part of an investigation into a German tax fraud scandal.

Public prosecutors have combed through the premises of Deutsche Boerse’s subsidiary Clearstream over a share-trading fraud case in which the German government was allegedly tricked into paying billions of euros in tax rebates.

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“As in the past, Deutsche Boerse is fully cooperating with the authorities,” a spokesperson said, adding that the investigation was focused on both clients and staff.

The current investigation was started roughly six years ago.

German newspaper Handelsblatt, which first reported the raid, added that Clearstream apparently played a key role in the illegal dealings.

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At the centre of the probe is the so-called “cum-ex” tax scandal, which involved the act of cross-border trading of company shares around a syndicate of banks, investors and hedge funds to create the impression of numerous owners, with each entitled to a tax rebate.