RBC Sued Over 'Massive' Tax-Avoidance Trading Scheme

Law360, New York (April 2, 2012, 5:43 PM EDT) -- The U.S. Commodity Futures Trading Commission alleged Monday that the Royal Bank of Canada had been engaged in a “massive” wash-trading scheme aimed at reaping hundreds of millions of dollars in Canadian tax breaks while avoiding the risks of the stock market.

In a complaint filed in federal court in Manhattan, the CFTC alleged that the Canadian bank attempted to get the Canadian tax benefits of purchasing shares of both U.S. and Canadian companies, but avoid the risks associated with holding those stocks by then selling...
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