Deutsche Being Bank Accused of Tax Fraud By Federal Prosecutors

The U.S. has been increasingly going after foreign financial institutions that try to skimp on taxes. The latest move from the IRS is an aggressive lawsuit against Deutsche Bank, which the federal tax agency claims owes the U.S. somewhere in the neighborhood of $190 million in overdue taxes, penalties and interest.
However, if you ask Deutsche Bank, they settled this dispute five years ago. According to reports, the large German bank claims that it reached a settlement with the IRS back in 2009 and it is not sure why the U.S. is coming after again regarding the same taxes.
The issue revolves around a deal that began back in 200 when Deutsche Bank acquired a company that owned three million shares of Bristol-Myers Squibb. When those shares jumped in value, the U.S. claims that Deutsch Bank skipped out on tens of millions of dollars in taxes from capital gains, when the bank eventually sold the shares.
According to the lawsuit the U.S. claims that the bank set up several so-called “shell companies” in order to absorb the tax blow from the profits made when they sold the shares. The IRS claims, however, that those shell companies did not have enough money to pay the taxes the federal government was owed. The lead prosecutor in the case claims that Deutsche Bank was involved in “nothing more than a shell game.”
Recent Trends in the Venture Capital Community
Recent Trends in the Venture Capital Community Recently, I attended a Venture Capital Conference in which one of the speakers predicted we would see technology change in the next 15 years that would rival advancements similar to the past 100 years. That is a bold prediction, but as new technologies continue to emerge we are…
Tax Filing Mistakes
Tax Filing Mistakes Tax return anxiety is on the rise as the federal tax filing date looms. The prospect of filing an erroneous return increases as more rely on tax software to help prepare their returns. For the week ending March 28, more than 10,000 electronic returns were filed from home computers, an increase of…
Preparing Your Business Plan
Preparing Your Business Plan “Other things being equal, a well prepared business plan will increase your chances of obtaining the venture capitalist’s financial commitment.” Introduction A business plan is a description of your business. To be complete your plan should describe: Your company and industry The product The market and marketing approach How the product…
How to Recession-Proof Your Small Business
How to Recession-Proof Your Small Business The recent collapse of Bear Stearns & Co., one of the largest financial institutions in the world, has intensified the fears of most small business owners in the Bay Area despite an earlier, rosier prediction by the Association of Bay Area Governments that the recession would have minimal effect…