"Cum-Ex": Red-Greens see failings on the part of the tax authorities
After a good three years of work in the "Cum-Ex" investigation committee of the Hamburg Parliament, the SPD and the Greens still see no evidence of political influence on the tax treatment of Warburg Bank, which was involved in the tax scandal - but they do see omissions on the part of the tax authorities. In a red-green supplementary vote on the interim report submitted on Monday, which the committee is to decide on Wednesday, former member of the Bundestag Johannes Kahrs and former Hamburg Senator of the Interior Alfons Pawelczyk (both SPD) are also criticized for their connection to the private bank.
According to the SPD and Green Party spokespersons Milan Pein and Farid Müller, concerns about a threat to the bank's existence, as claimed by the bank itself, played an unchecked role in 2016 when the tax authorities were considering whether to reclaim unjustly refunded taxes amounting to 47 million euros from the bank. According to the witnesses heard by the committee, this concern had not led to a decision not to reclaim the money. However, because of this - ultimately unfounded - concern, the tax authorities had dealt with a possible official liability in the event of the bank being put at risk.
In addition, the tax authorities had not made use of the taxpayer's duty to cooperate, which is regulated in the German Fiscal Code. This provides for a reversal of the burden of proof with regard to the claim for reimbursement of capital gains tax. Furthermore, a partial limitation period for the claim for repayment was erroneously assumed.
Contrary to original plans, the tax office for large companies had waived the reclaims of 47 million euros against the bank in 2016 - and, in the opinion of those involved in the decision, allowed them to run into the statute of limitations. A further 43 million euros were only reclaimed a year later shortly before the statute of limitations expired on the instructions of the Federal Ministry of Finance.
The red-green supplementary vote is also critical of the connections of the then SPD Member of Parliament Johannes Kahrs and the former SPD Senator of the Interior Alfons Pawelczyk to Warburg Bank. "Mr. Pawelczyk and Mr. Kahrs in particular must be held accountable for the fact that their actions gave rise to public accusations of favoritism and led to two investigations that have not yet been concluded," said Milan Pein, the SPD chairman of the committee.
According to the committee's findings, Kahrs and Pawelczyk had campaigned for the bank - including for meetings between the bank's shareholders Christian Olearius and Max Warburg and the then Mayor of Hamburg and current Federal Chancellor Olaf Scholz (SPD). Both are being investigated by the public prosecutor's office in Cologne for favoritism in connection with "cum-ex" transactions.
Scholz later admitted to the meetings with the bankers, but testified before the committee that he could not remember the content of the discussions. However, he always ruled out any influence during his two interrogations before the committee.
Pein and Müller pointed out once again on Monday that none of the more than 50 witnesses questioned by the committee - including those who were involved in the decision against reclaiming the refunded taxes - had reported any influence.
Pein and Müller also said that the bank had settled all the claims for repayment, including interest, in the meantime, so that the city had not suffered any loss. The Hamburg tax court recently confirmed that these claims were justified.
Despite the concerns raised about potential favoritism towards Warburg Bank, neither the SPD nor the Green Party members found any political influence on the tax treatment of the bank in the "Cum-Ex" investigation. However, there were omissions in how the tax authorities handled the finances and taxes related to the bank, specifically in neglecting the taxpayer's duty to cooperate and erroneously assuming a partial limitation period.
Source: www.dpa.com
