Deutsche Boerse offices raided in German tax probe

By:

Add as a preferred source on Google
FRANKFURT/MAIN, GERMANY: Overall view of the trading hall of German stock exchange operator Deutsche Boerse after it officially re-opened after refurbished, 26 February 2007 in Frankfurt. Deutsche Boerse has not revealed how much the renovation and refurbishing cost, but observers estimate the cost at around six million euros (7.9 million dollars). The sleek new hall is now composed of five round and two half-round cubicles for lead brokers. AFP PHOTO DDP/THOMAS LOHNES GERMANY OUT (Photo credit should read THOMAS LOHNES/AFP/Getty Images)

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.

Read more: Deutsche Bank fined over US corruption charges

“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.

Read more: Softbank suffers writedown

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.