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Freshfields Bruckhaus Deringer’s Frankfurt office has been raided by German prosecutors in connection with a tax evasion investigation.

According to Reuters, the raid was connected to an investigation into so-called “cum-ex” transactions, which are at the centre of one of the largest tax scandals in Germany.

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James Booth

James joined Legal Week in June 2015. He reports on leading UK law firms, as well as covering the African legal market. He previously worked for legal directory Chambers & Partners as a deputy editor.

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  • Freshfields Bruckhaus Deringer
  • Jones Day

/uploads/sites/378/2016/09/Germany-Article-201609050630.jpg" alt="" width="616" height="372" /> Freshfields Bruckhaus Deringer���s Frankfurt office has been raided by German prosecutors in connection with a tax evasion investigation. According to <a href="http://www.reuters.com/article/freshfields-raid/freshfields-raided-in-frankfurt-in-german-tax-evasion-inquiry-idUSL8N1MY2UN?rpc=401&amp;">Reuters</a>, the raid was connected to an investigation into so-called "cum-ex" transactions, which are at the centre of one of the largest tax scandals in Germany. The asset-stripping deals have allegedly been used by a number of banks in Germany to claim billions of euros in rebates from the German authorities, before a loophole was closed in 2012. The loophole effectively allowed two parties to claim ownership of the same shares, enabling both parties to receive the rebates. German newspaper <em><a href="http://www.sueddeutsche.de/wirtschaft/steuerskandal-erzengel-mit-hoellischem-gegner-1.3719190">Sueddeutsche Zeitung</a></em>, which broke news of the Freshfields' raid, claimed that the raid related to an opinion that the magic circle firm prepared for Canada's Maple Bank. The German arm of the bank, which was raided by German authorities in connection with the tax evasion investigation in 2015, was <a href="http://www.maplebank.com/de/ueber-uns.html">closed by German authorities</a> in 2016 amid worries that unpaid taxes were threatening its financial position. A Freshfields spokesperson said: ���Freshfields is confident that the prosecutor���s review will reveal that our advice has been legally sound.��� Earlier this year, US firm Jones Day <a href="http://www.legalweek.com/sites/legalweek/2017/07/28/german-court-blocks-vw-prosecutors-from-using-seized-jones-day-docs/">was raided by German authorities</a> investigating the firm���s client, carmaker Volkswagen. Jones Day had carried out an internal investigation into the emissions-rigging scandal at Volkswagen. A German court later ruled that documents seized in the raid <a href="http://www.legalweek.com/sites/legalweek/2017/07/28/german-court-blocks-vw-prosecutors-from-using-seized-jones-day-docs/">could not be used</a> by investigations looking into the scandal. Freshfields has also played a role acting for Volkswagen on the scandal, advising on Volkswagen���s $4.3bn settlement with the US government. <

  • Freshfields Bruckhaus Deringer
  • Jones Day

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