Citicorp reportedly spared action in alleged tax twist

Citicorp disguised $46 million in profits in a seven-year scheme which violated foreign tax and currency laws, a Securities and Exchange Commission enforcement staff found, but the SEC declined to take action against the world's largest foreign exchange dealer, the New York Times reported.

A three-year inquiry by the staff showed that between 1973 and 1980 the bank shifted funds from Citicorp branches in Europe to a Bahamas branch to escape high European taxes on profits. According to the Times, SEC documents show that high-level commission officials overruled the findings, regarding the violations as ''insignificant and harmless.''

Citicorp issued a statement saying that its ''trading practices and procedures were basically proper.''