Business Mass Fraud in the EU Tax scam cost Europe E55bn Santander & Deutsche Bundesbank

Oh even bigger and more intricate a report on a mass europe-wide tax scam reveals just how much taxpayer money was siphoned off by rich investors to make themselves even richer what would a full English breakfast be without the bacon well let you know how brexit could change Brits eating habits and beyond brexit the EU seeks Asian support for free trade sticking it to Washington I've been fazool in let's do business a tax scam that's proving to be even bigger and even more intricate than first thought a report today revealing how a mass europe-wide scheme by banks and rich Investor's siphoned off taxpayer funds to make themselves even richer the lenders under investigation include Santander and Deutsche Bank some insiders call it organized crime in pinstripes they're referring to the controversial but at the time legal dividend stripping transactions allegedly carried out by almost every major European bank starting in 2001 investors would rapidly sell each other's stocks around the day's companies paid out dividends the capital gains tax on the dividend was paid only once but the multiple short-term owners claimed the tax return this shares changed hands so quickly that tax authorities were unable to determine the real owner so all of them were able to claim a tax rebate according to a tax expert Germany's tax office could have lost at least 31 point eight billion euros the amount was previously thought to be around five billion the new estimate suggests France lost at least 17 billion euros Italy 4.5 and Denmark 1.7 billion euros at least six other countries could also be affected the fiscal loophole was closed in 2012 but many questions remain unanswered such as when Germany informed other countries about the Comex dealings the case is firing up those demanding stronger EU financial oversight and over to Willie Barnes now financial correspondent in Frankfort only what's it mean that all these big banks as I mentioned before are involved well you know there was a big pressure I imagine from clients but also from top management to do as the other guy did in order to make more profit and offer clients a better return people saw that others were doing it and were getting away with it and so I think at the beginning at least also with ambiguous wording in in the legal of wording of it there was not much let's say in the way of preventing people from realizing that they're taking a risk so there were lots of banks in there and I think the more that joined the fray the less the barriers were for others to to actually be the last ones in now these fraudsters or very tricky investors whatever you want to call them they used my taxpayer money your taxpayer money as well are we gonna see it again yes yes I don't think we're going to see all of it again because you know the people who did this they're smart and I don't think that people who did this kind of thing would have it lying around on a normal current account and then have it under their real name they would have invested it possibly in tax havens we've seen in previous investigative journalists works how hard it is to decipher that how hard it is to get behind money that's been laundered and it may be very difficult there's one key witness for the state apparently according to the reports that we got today who was profiting in the way of 50 million euros a guy that smart a guy that greedy I doubt that he'd readily have the 50 million stashed away just to be ready to give it to the authorities in case they asked now only 38 journalists from a dozen European countries poured over 180 thousand pages of files to uncover this fraud why were reporters discovering this why were not officials while the journalists were able to vote their time and lots of resources to this plus they had the advantage of journalism whistleblowers sources coming to them and telling them something totally different than what prosecutors and financial supervisors are up against plus the authorities I've heard this again and again when I talked to lawyers prosecutors financial supervisors they can't match the kind of money that's made in corporate law or Investment Banking when they hire new people Lee Botts first in Frankfort thank you very much