BACK TAXES Russia Seeks €160 Million from Deutsche Bank

Germany’s largest financial institution allegedly lowered its taxable income in Russia by moving foreign exchange to its unit in London. Deutsche said it's cooperating with the authorities.
Deutsche Bank is in hot water in Russia again, picture source: DPA

Deutsche Bank faces fresh trouble for suspect transactions in Russia, just weeks after resolving a major money-laundering scandal there.

Russian tax authorities are demanding 10 billion rubles (€160 million) in back taxes from the financial institution, according to a report by the newspaper RBC, which cited anonymous sources.

Deutsche Bank allegedly bought foreign exchange on Russia’s domestic market and then transferred this money to its London unit to lower its taxable income. Deutsche’s Russian unit, in a statement, said it was undergoing a routine audit and was cooperating fully with the authorities.

"As part of an ongoing routine audit, Deutsche Bank is working with Russian tax authorities on matters relating to standard business operations that follow normal industry practice," Deutsche's Russian unit said in a statement, according to Reuters.

An insider said the tax issue was unrelated to the Russian money-laundering case that Deutsche resolved with British and U.S. financial regulators in a $630-million settlement last month.