Raid: Tax investigators search Deutsche Bank headquarters

Investigator Public Prosecutor’s Office and Tax investigation have the headquarters on Wednesday Deutsche Bank searched in Frankfurt am Main. According to information from several German media, the measures are related to investigations on suspicion of tax evasion at Cum-cum shops.

Cum-cum trades are stock trades around the day of dividend distribution. Stocks were temporarily moved back and forth between foreign and domestic investors in order to fully or partially avoid taxes on dividends. Unlike cum-ex transactions, which are classified as criminal, cum-cum models are not fundamentally illegal. However, authorities and courts have been examining for years whether many of these constructions were illegal and whether taxes were unfairly saved.