Deutsche Bank has reached settlements with the tax authority and other banks concerning the tax‑refund claims for several Cum‑Ex funds. According to the bank’s latest annual report, the agreements clarify who will bear which portion of the outstanding tax debt, as reported by “Handelsblatt” in its Wednesday issue.
For two of the funds the dispute involved a total of €85 million, of which €29 million was assigned to Deutsche Bank. “The bank participated in an amicable pool solution to achieve legal resolution” a spokesperson said. The settlement primarily concerns two special funds launched in 2009. Because other funds were also reconciled, the overall tax loss amounts to more than €200 million.
In the Cum‑Ex transactions shares were traded back and forth in a closed loop. The parties sought refunds for capital‑gain taxes that had never been paid. From an economic standpoint the deals made no sense-the purported profits were essentially extracted from the tax treasury.