BNP Paribas Bank in France lost a case where it has to pay back £35m tax in the UK. HMRC claimed the bank tried to use a tax avoidance scheme involving share dividends using a scheme known as “dividend stripping”.
BNP Paribas paid the full amount of tax before the tribunal was heard which dealt with a transaction dating back to 2005.
According to HMRC, the bank tried to get an exemption from tax by claiming an artificial loss on the purchase and sale of dividends.
BNP Paribas says it takes its tax obligations seriously; and pays taxes in accordance with UK legislation and is transparent with HMRC.