Spanish tax authorities probe Barclays

By MarketWatch

Spanish tax authorities are investigating the local unit of Barclays PLC over concerns that it helped clients avoid paying taxes on dividend payments, Spanish newspaper Expansion reports Monday, citing sources at the government and at the bank
The probe began late last year and is expected to continue for a few more months, Expansion reports
It is looking at so-called "dividend stripping" transactions by the U.K. bank's unit Barclays Capital. These are said to have helped clients reduce their tax bill by purchasing shares before they were due to pay dividends and then selling them back to the client afterwards