Deutsche Bank Has No Idea What U.S. Is Talking About Re: Taxes

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Federal prosecutors in Manhattan on Monday sued Deutsche Bank, claiming that it owes the United States government about $190 million in unpaid taxes, penalties and interest. Prosecutors contend the tax liability stems from a transaction that Deutsche Bank undertook 14 years ago. The bank had acquired a company that held three million shares of Bristol-Myers Squibb. The shares appreciated in value and, federal prosecutors say, the bank came up with a “scheme to evade” paying tens of millions of dollars in capital gains taxes on the shares when they were eventually sold. But Deutsche Bank, which has large operations in the United States, contends that it reached a settlement with the I.R.S. over the same tax dispute in 2009. “It is not clear to us why we are being pursued again for the same taxes,” the bank said in a statement. It said it intended to “vigorously” fight the lawsuit. [Dealbook]

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