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@Business.Upside · Posted 03 Feb. 2021

Investor A owns shares in Company X worth 20 million euros. Investor C sells shares worth 20 million euros to Investor B without owning them himself (short selling). Investor A receives a dividend payout of 750,000 euros (total dividend - 1 million euros). After payout, Investor A's shares are worth 19 million euros. Investor A receives a tax certificate to reimburse 250,000 euros of dividend tax. Investor A sells shares worth 19 million euros to Investor C. Investor C delivers shares worth 19 million euros to Investor B and pays him an additional 750,000 euros. Investor B sells shares worth 19 million euros back to Investor A. Investor B receives a tax certificate to reimburse 250,000 euros of dividend tax. Investor A, B & C share the tax reimbursements.