Bank Chairman Faces Prosecution

A Spanish High Court judge has now accused chairman Emilio Botin and four others of involvement in helping over 130 customers commit a tax fraud of around E872m during 1987-1991.

The five are accused of making loans which allowed customers to avoid paying tax on up to 25% of their bank deposits and of not informing the tax authorities of the correct names of those who benefited from the arrangements.

Santander has previously taken the position that it was not its responsibility to declare the arrangement to the tax authorities as the bank itself had no tax liability.

Recent developments will be a major embarrassment for Botin, who also is a Royal Bank of Scotland main board director.