Warburg Invest and BNY Mellon pay millions in tax debt

According to a media report, the New York bank BNY Mellon and Hamburg-based Warburg Invest have to repay 60 million euros to the Federal Central Tax Office in connection with so-called "cum-ex" transactions. They are thus liable for the tax liability of the BC German Equity Special Fund, which was managed by Warburg Invest in 2009, as reported by the "Handelsblatt". The custodian bank at the time was BHF Asset Servicing, which was later taken over by BNY Mellon. Warburg Invest is the capital investment company of the Hamburg Warburg Group.

When asked by dpa, representatives of the Warburg Group and BNY Mellon did not comment on the repayment and its distribution, about which confidentiality was agreed according to the “Handelsblatt”. The Federal Central Tax Office initially made no statement either.

Deutsche Bank will participate in the payment to be made by BNY Mellon, a spokesman for the Frankfurt money house told the German Press Agency on Monday, without naming any figures. "The final amounts can still be reduced with regard to any third-party payments." At the time in question, BHF belonged to the Sal. Oppenheim Group, which was acquired by Deutsche Bank in 2010. A few months later the company was resold to BNY Mellon.

In "cum-ex" transactions, blocks of shares were moved back and forth by several participants around the dividend record date with ("cum") and without ("ex") a right to a dividend. As a result, tax offices reimbursed capital gains taxes that had not been paid at all. The state suffered billions in damage.