German authorities investigating a long-running tax scandal have raided Freshfields Bruckhaus Deringer's Frankfurt office for the third time in two years. 

The firm has confirmed its base was searched last week (13 June), following initial searches last autumn.

The investigation centres around so-called 'cum-ex' transactions, which were allegedly used by a number of banks to claim multiple refunds of tax that had only been paid to the German authorities once, before a loophole allowing such practices was closed in 2012.

A spokesperson for the firm said in a statement: "The search involved a previous mandate relationship of our firm. We are confident that our advice was not legally objectionable."

The latest raid comes two months after the Magic Circle firm was sued over tax advice given to the German arm of Canada-headquartered Maple Bank. 

The bank's administrator, CMS Germany partner Michael Frege, brought the claim in April regarding tax opinions given by Freshfields to Maple Bank prior to its collapse in 2016.

Maple Bank's German arm collapsed when its financial position became unstable after it had to pay back unpaid taxes.

A Freshfields spokesperson said at the time: "We are examining the statement of claim in detail and will fully defend ourselves. We do not see any basis for claims against our firm."