tax damage
Country Gets $1B Back From Cum-Ex Deals

banknotes

Euro banknotes lie on a table. Photo: Patrick Pleul/dpa-Zentralbild/dpa/Illustration

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The state has now successfully reclaimed more than two thirds of a tax loss of around 1.5 billion euros in Hesse due to illegal cum-ex transactions. This emerges from a response from the Ministry of Finance to a parliamentary question by AfD MP Rainer Rahn in the state parliament in Wiesbaden. The sum consists of capital gains tax and solidarity surcharge.

From a tax loss of around 1.5 billion euros in Hesse the country has now successfully reclaimed more than two-thirds through illegal cum-ex deals. This emerges from a response from the Ministry of Finance to a parliamentary question by AfD MP Rainer Rahn in the state parliament in Wiesbaden. The sum consists of capital gains tax and solidarity surcharge.

“There are still tests and investigations pending,” the ministry said. In this respect, no total amount can be given for the financial damage that the country has suffered due to illegal cum-ex practices.

With these deals, investors in stock transactions around the dividend date could have capital gains taxes that had never been paid refunded, and thus cheated the state by an estimated double-digit billion amount. The key figure in these deals, Hanno Berger, is among others in Wiesbaden in court.

For a long time it was unclear whether cum-ex deals were punishable by law. In 2012, the tax loophole was closed. The Federal Court of Justice then decided in 2021 that cum-ex transactions are to be classified as tax evasion.

According to the Frankfurt Public Prosecutor’s Office, there are currently 13 complexes of procedures in connection with cum-ex transactions in Hesse, as the ministry explained. They included 30 investigations, 18 of which are still open. Charges were brought in three cases.

dpa