Cum-Ex: Indictment for 343 million in tax evasion
In the cum-ex scandal, the Munich public prosecutor's office has brought charges against two managers for alleged tax evasion of 343 million euros. In 2009 and 2010, the two are alleged to have ensured that a group of companies was reimbursed capital gains tax in this amount, which had not been paid at all, as the Munich I public prosecutor's office announced on Wednesday. In return, they are said to have received around 16 million euros each.
According to the public prosecutor's office, the men are managing directors or board members of companies in the Munich-based group. The investigators did not disclose which group of companies was involved. More than 900 million shares with a turnover volume of several billion euros are said to have been traded for the crimes charged.
The complex investigations that have now led to the indictment have been ongoing since 2013. According to the public prosecutor's office, the files comprise around 229 volumes. The investigations into several of the accused are ongoing.
In cum-ex deals, banks and investors had unpaid capital gains tax refunded and defrauded the state of an estimated total of at least ten billion euros. In doing so, they exploited a loophole in the law: Around the dividend record date, shares with ("cum") and without ("ex") dividend entitlement were shifted back and forth. In the end, tax offices refunded unpaid taxes. The loophole was closed in 2012.
The indictment for tax evasion of 343 million euros in the cum-ex scandal has brought attention to the role of managing directors and board members in these complex financial schemes. Despite the closure of the loophole in 2012, the investigation into alleged banking processes involved in cum-ex deals is still ongoing, raising concerns about the potential for similar crimes in the banking sector.
Source: www.dpa.com
