On January 4, 2017, Deutsche Bank, A.G., DB U.S. Financial Markets Holding Corp., and Deutsche Bank Securities, Inc. (collectively, “Deutsche Bank”) agreed to pay $95 million to resolve a civil lawsuit brought by the United States in connection with federal income tax avoidance allegations.  According to the Complaint, Deutsche Bank acquired a corporation in 2000 that held stock with a very low cost basis.  When this stock was sold, Deutsche Bank would incur significant taxable income.  In order to dispose of the stock without paying the taxes that would be due, Deutsche Bank entered into a plan with a tax shelter promoter, pursuant to which Deutsche Bank transferred the shares to a shell company, which then transferred the shares back to Deutsche Bank in a manner that caused the shell company to incur the tax bill.  Deutsche Bank and the tax shelter promoter structured the transaction so that the shell company  had little or no assets.  Accordingly, the shell company was unable to pay the taxes due, and was left with a liability of more than $52 million in taxes, plus interest and penalties.  United States v. Deutsche Bank, A.G., et al., 14 Civ. 9669 (S.D.N.Y.). DOJ Press Release