Deutsche Bank to pay $553 mn in US dispute

FRANKFURT/NEW YORK - Deutsche Bank has agreed to pay the US Internal Revenue Service $553.6 million in a long-running tax dispute, the bank announced in Frankfurt Tuesday.

In return for the payment, the US Attorney’s Office has agreed to drop criminal investigations and not to prosecute the bank, a statement said.

The case is believed to have resolved around Deutsche Bank’s involvement in tax shelters for clients that were marketed between 1996 and 2002.

The bank said its current net income would not be affected by the payment as it had already taken “appropriate provisions” for the full amount of the sum involved.