Barclays PLC (NYSE:BCS) (LON:BARC) is under investigation by Germany’s tax authorities over the use of ‘dividend stripping’ strategy for alleged tax avoidance.
According to German daily Sueddeutsche Zeitung, Barclays PLC (NYSE:BCS) (LON:BARC) avoided taxes up to €280 million ($367 million/£238 million) per year for 10 years, until 2012 by adopting ‘dividend stripping’ strategy.
The ‘dividend stripping’ strategy involves purchase and naked short-selling of certain shares before and after the dividend payout dates.
According to the Germany daily, the strategy has also been used by other banks.
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