UK banks caught up in Europe's biggest-ever tax fraud of £10billion trends now
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Europe's biggest ever tax scandal is about to engulf banks in London - and is already worth £10billion in Germany alone.
The multi-billion pound scam, which has already rocked Germany, is likely to lead to more claims against banks and individuals operating in the City.
The so-called Cum-Ex case involves alleged dividend tax frauds that are estimated to have cost German taxpayers alone nearly £10billion.
Up to 2,000 suspects are implicated, many of them bankers, brokers and hedge fund managers based in the City of London. More than a dozen convictions already have been secured in German courts.
Banks under investigation include Britain's Barclays, Bank of America Merrill Lynch, Morgan Stanley of the US, France's BNP and Japan's Nomura, as well as law firms and auditors.
Scam: Europe's biggest ever tax scandal is about to engulf banks in London
The epicentre of the long-running cross-border probe is Cologne, but it extends much further afield – and is escalating. In a significant development, Danish authorities last week won the right to pursue a £1.4billion alleged Cum-Ex fraud in London after the Supreme Court ruled it could be heard in England.
Experts say the judgment will have profound implications for similar cases being heard. 'This ruling is likely to open the floodgates to claims by other European regulators,' said Prateek Swaika,
