Tax evasion - Cum-Ex prosecution: Over 600 million euros paid in arrears
In the course of investigations into illegal Cum-Ex and Cum-Cum tax offenses in Baden-Württemberg, tax refunds totaling approximately 603 million Euro have been recovered so far. Nearly 98% of the demanded amounts have been paid back. According to the Finance Ministry in Stuttgart, the total amount of accumulated tax demands reached 612 million Euro by the end of 2023, as stated in response to a Landtagsfrage (parliamentary question) from the FDP fraction.
According to the Finance Ministry, two banks have been affected by the two ongoing investigations. No names have been mentioned. The investigations target ten individuals. It is intended to achieve a swift conclusion of the investigations.
Cum-Ex refers to particularly serious tax evasion, with its peak period being from 2006 to 2011 and costing the treasury estimates in the billions. Around the dividend record date, stocks were being shifted back and forth with ("cum") and without ("ex") dividend claims. The goal of this confusion was to receive taxes paid that had not been actually paid. Cum-Cum is similar to Cum-Ex; these transactions were detrimental to the public treasury. The cleanup of the largest tax fraud in the Federal Republic is gradually making its way into the courts, with the Cologne Prosecutor's Office playing a central role.
The judicial spokesperson for the FDP fraction, Nico Weinmann, stated: "Over 600 million Euro in evaded taxes, ten years of investigations, but hardly any institutional or individual responsibilities." For tax morality, it is essential that tax legality is also consistently enforced. However, this requires the prosecution to be able to act on an equal footing with the accused in complex proceedings. Justice Minister Marion Gentges (CDU) must finally do more: Proceedings of this magnitude and with such public interest should move faster and yield quicker results. Otherwise, the state becomes unbelievable.
Finance Ministry Baden-Württemberg
- The Finance Ministry in Baden-Württemberg, specifically in Stuttgart, has identified two banks as being involved in the ongoing investigations related to Cum-Ex and Cum-Cum tax offenses.
- The BMF (Federal Ministry of Finance) in Baden-Württemberg has demanded a total of 612 million Euro in taxes due to these illegal activities, as communicated in response to a Landtagsfrage from the FDP fraction.
- Despite the significant recovery of approximately 603 million Euro in tax refunds, there are concerns about the lack of accountability in dealing with tax evasion crimes, as pointed out by the FDP judicial spokesperson, Nico Weinmann.
- The FDP fraction in Stuttgart calls for a swift conclusion to the investigations and stronger action from Justice Minister Marion Gentges, arguing that the slow progress and lack of results in tackling such high-profile and extensive financial crimes may undermine public trust in the justice system.
