Investec, a prominent financial institution, is maintaining secrecy around possible financial outflows arising from its alleged involvement in fraudulent cum-ex transactions. The bank is invoking International Accounting Standards rules to keep its own estimate of the damage confidential to avoid prejudicing the outcome. The unexpected resignation of a lead German prosecutor poses a potential setback in holding Investec accountable.
In its 2024 annual report, Investec remained tight-lipped about formal claims from the German Federal Tax Office related to the cum-ex scandal. Cum-ex transactions involve trading shares around dividend declarations to fraudulently claim tax refunds, resulting in billions in lost tax revenue for European governments.
Investec is cooperating with German authorities and conducting internal investigations, but remains cautious about disclosing specifics that could compromise negotiations. The departure of a key prosecutor adds to the uncertainty surrounding the case. Despite this, Investec continues to assert its integrity and commitment to ethical standards.
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