A Swiss bank said Friday one of its top executives has resigned amid a German tax-fraud investigation that is recently expanded across national borders.
The investments at the heart of the ongoing German probe involve what are known as “cum/ex” stock trades, which can be used to claim tax credits based on transactions timed around dividend payouts.
Sarasin and dozens of other defendants have been accused by German authorities of tax evasion and fraud in relation to cum/ex trades, which prosecutors allege have resulted in fraudulent applications for about €460 million ($576 million) in tax credits.
The Wall Street Journal reported earlier this week that European prosecutors and tax authorities are now expanding the German investigation of cum/ex trades to other countries, including the UK and Switzerland. UK tax authorities in recent weeks have questioned London-based officials at global banks about their involvement in the trades, The Journal reported.
Last week, Swiss authorities raided the Basel and Zurich-based offices of Bank J. Safra Sarasin in connection with the German probe, in addition to 20 other undisclosed offices and private homes in Switzerland. At that time, the bank said it “was and is not involved” in setting up the disputed cum/ex transactions, which were contained in funds “established and operated by a third party.”
In the bank’s statement issued on Friday, Sarasin denied accusations made against him personally and said he “wants to be free and available to organize his own defense.” According to his biography on Bank J. Safra Sarasin’s website, Sarasin also serves as president of the German-Swiss Chamber of Commerce.
