Banks are staring at € 5 billion French Dividend Tax Bill, says Senator | Company Business News

(Bloomberg) – Banks in France face a joint tax bill of as much as € 5 billion ($ 5.8 billion) on controversial trades designed to escape levies on dividend payments, according to a legislature called the process a ‘fraud’. Senator Jean-François Husson made the announcement on Thursday following a review of confidential documents from French tax officials-suggesting that the liability for banks has doubled since the authorities released estimates in 2023. Husson told reporters that the newspapers gave certain indications that the tax fraud was still underway. “France’s finance ministry has refused to comment on the amount. Over the past few years, the banking industry in France has been clashing with lawmakers, tax officials and prosecutors on a dividend arbitrage strategy known as CUM-CUM, which, according to authorities, is responsible for billions of euros in lost income. Dividend season after an entity exempt from taxes, such as a local bank, and then dividing the spiteful money between the parties involved. -Abboules and to prevent foreign owners of French shares and local banks from exporting transactions aimed at withholding tax on dividend payments. Interpretation of the law, which substantially deprived the effectiveness of measures against parliament voted by Parliament. is not. In 2023, financial prosecutors coordinated raids for Witness collection on the premises of BNP Paribas SA and its Exane SA unit, Societe General SA, HSBC Holdings Plc and Natixis SA performed as part of their investigation into the CUM-CUM. voted. In the midst of uncertainty about the application of new laws, several major banks in Paris, from Bank of America Corp.