Citigroup fined for offshore tax avoidance deals

Monday, October 12, 2009

The Financial Industry Regulatory Authority, the broker’s regulator, will slap a $600,000 fine on Citigroup for derivatives deals that were designed in part to help offshore clients avoid taxes on dividend payments. It is thought that this action could forsee further measures against Wall Street banks that made similar transactions, as part of a wide-ranging crackdown against unregulated ”offshore” acitvity.  Authorities maintain that complex derivatives transactions have allowed offshore banking clients to avoid billions of dollars in US taxes.

http://www.ft.com/cms/s/0/0d96ee5c-b689-11de-8a28-00144feab49a.html?nclick_check=1


delicious | digg | reddit | facebook | technorati | stumbleupon | savetheurl

Tags: , , , , ,

Leave a Reply