HSBC to pay €300m to settle French dividend tax probe

(Sharecast News) - Global banking giant HSBC is to pay French authorities nearly €300m (£261m) to settle a dividend fraud case regarding abandoned practices that ended more than six years ago. The probe by Parquet National Financier related to practices surrounding internal dividend arbitrage transactions made between 2014 and 2019, which allegedly helped a number of banks avoid certain taxes.

The settlement, announced on Thursday, does represent an admission of guilt but comprises a €268m fine and a tax bill of €30m.

HSBC released a statement saying it was "pleased to have resolved this matter which relates to certain historical trading which ended in 2019."

"The settlement [...] recognises the bank's co-operation with the investigation, as well as the corrective measures it took to address the historic issues," HSBC said.

The news came on the same day that HSBC shareholders voted in favour to take its Hang Seng division in Hong Kong private, with 86% of shareholders approving the transaction.

Shares were up 0.4% at 1,195.40p just before the close of play on Thursday.