German prosecutors carried out a search of Morgan Stanley’s Frankfurt offices on Tuesday.
The episode is related to a years-long investigation into tax fraud involving several companies in the financial sector across Europe.
In addition to the bank, authorities searched the homes of two suspects in the case, the prosecutor’s office in Cologne said. The intention was to collect emails and written correspondence, it added.
A spokeswoman for the bank said the investigation relates to “a historic activity and we continue to cooperate with German authorities”.
The case focuses on “cum/ex” transactions, operations executed during a few days before and after the dividend payment dates foreseen by the companies.
These transactions typically involve banks, brokerages, hedge funds and millionaires in agreements to buy, lend or sell stocks during a brief window of time.
Careful coordination of these transactions allowed many to obtain refunds for taxes paid on dividends.
German authorities allege that these refunds were artificially claimed with these operations, which could constitute fraud.
The local government has acted to prevent these transactions in the country and closed this loophole in 2012.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
