IRS Wins Some Loses Some
IRS Wins Some, Loses Some
Deutsche Bank Fined $554 Million by IRS
In a case that is strikingly similar to that of UBS Bank of Switzerland, Deutsche Bank has admitted to criminal wrongdoing in helping wealthy American account holders avoid taxes. As a result, it has agreed to pay the IRS a $554 million fine, the amount the IRS has not collected in taxes and fines between 1996 and 2002. The fine imposed on Deutsche Bank also includes a $149 million civil penalty. This ends a long-running dispute between the bank and the IRS.
The Justice Department and federal prosecutors intend to enforce a non-prosecution agreement where the bank continues to give its cooperation. The Justice Department and prosecutors also consulted an independent expert to ensure the bank would not repeat such actions.
In the UBS case, the Swiss bank was fined $780 million for its role in helping its American clients dodge taxes.
Deutsche Bank made an official statement expressing its relief that this case is now closed. In its statement, the Bank said that since 2002, it has taken steps to strengthen its policies and procedures to comply strictly with the laws of the land in which it does business and ensure the highest standards of ethical conduct in its business dealings.
In addition, the bank said that the fine imposed on them would not affect its profitability because it has already made provisions for this amount earlier.
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