European Politicians Seek Clampdown on Tax Trade Trick

European Politicians Seek Clampdown on Tax Trade Trick
Mobile police surveillance cameras in front of the steeples of Cologne Cathedral in this file photo. Reuters/Wolfgang Rattay/File Photo
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FRANKFURT—European politicians have called for action to tackle dividend stripping, after media revealed how large banks were involved in trading schemes that cost taxpayers billions of euros.

In Germany’s biggest post-war fraud investigation, prosecutors in Cologne are investigating banks involved in the trades, which secured illicit double tax rebates on dividend payouts.