The French government is seeking the recovery of 2.5 billion euros ($2.75 billion) in back taxes from multiple banks implicated in a tax evasion scheme related to

dividend payments, according to Budget Minister Gabriel Attal. Attal revealed this information during a recorded public Senate hearing on May 2, marking the first time the potential losses to state finances resulting from the so-called cum-cum trades have been quantified.

Attal did not disclose the names of the banks involved in the demands and mentioned that efforts are underway to determine the precise amount of lost tax revenue. Le Monde newspaper initially reported on Attal's comments on Monday, stating that the 2.5 billion euro figure pertained to alleged fiscal fraud occurring between 2017 and 2019.

As of now, Attal's office has not provided an immediate response to requests for comments, and a spokesperson for the financial prosecutors' office declined to comment on the matter.

In March, French tax authorities conducted searches at the Paris offices of five banks, including Societe Generale, BNP Paribas, and Exane (a subsidiary of BNP Paribas), on suspicion of fiscal fraud related to the case. Natixis, the investment bank arm of French banking group BPCE, was also targeted in these searches. Similar investigations have taken place in Germany and other European countries.

According to prosecutors, the French banks allegedly assisted foreign clients in temporarily transferring the shares they held in French companies around dividend days to avoid taxation. The banks mentioned in the investigation have chosen not to comment on the situation.

Following the searches, the French banking federation filed a case with the country's highest administrative court to seek greater clarity from the government regarding applicable dividend tax regulations. The outcome of this case remains to be seen. Photo by Reinhardhauke, Wikimedia commons.