German financial watchdog BaFin announced that companies employing two controversial strategies to game dividend taxes face legal and fiscal liabilities of as much as €7.01 billion ($7.99 billion). The regulator identified the tactics during a recent audit and warned that firms will be scrutinized for compliance violations. The disclosed amount reflects the cumulative penalties and tax adjustments that could be imposed, underscoring the financial risk of such practices.

Companies are urged to review their dividend distribution methods to avoid future regulatory scrutiny and potential financial losses.