The French national economic prosecutor’s office, confirming the information of the newspaper Le Monde, announced today that investigations are underway at five banks in the region Paris Where suspected of tax evasionwhich refers to the so-called “CumCum” system, the tax regime for dividends.
The so-called “CumCum” practice in financial jargon is to avoid the tax on dividends that foreign shareholders of French listed companies have to pay. In particular, stockholders entrust their securities to the bank when collecting tax, thereby avoiding taxation. The practice came to light in 2018 when a group of 16 media outlets exposed it through “CumEx Files”.
Today’s European judicial cooperation investigations are conducted by 16 French judges and more than 150 investigators in the presence of six German prosecutors. According to Le Monde, Société Générale, BNP Paribas, Exane (a subsidiary of BNP), Natixis and HSBC are under attack.
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Source: Kathimerini
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