A landmark German tax fraud case could ripple through the finance industry

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Two British former investment bankers are on trial in Germany for their role in orchestrating an equity trading scheme known as 'cum-ex' between 2006 and 2011, which pocketed hundreds of millions of dollars from taxpayers.

In cum-ex trades, shares with and without dividend rights were quickly traded between various market participants just before the payout date for the dividend, allowing traders to reclaim double the taxes.

Two British former investment bankers are on trial in Germany for their role in orchestrating an equity trading scheme known as "cum-ex" between 2006 and 2011, which pocketed hundreds of millions of dollars from taxpayers. In cum-ex trades, shares with and without dividend rights were quickly traded between various market participants just before the payout date for the dividend, allowing traders to reclaim double the taxes.

Authorities have since deemed the reclaims illegitimate, but at the time of the trades, this was less black and white, and a vast network ofPicture taken on March 17, 2019 shows the headquarters of German banks Deutsche Bank and Commerzbank in Frankfurt am Main, western Germany.Julian Dixon, CEO of trading compliance technology provider Napier, told CNBC that the ripple effect of the cum-ex case could be far reaching.

 

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AloisIrlmaier 'Taxes that noone can pay anymore' & 'There is a high inflation, money uses more and more of its value' BruceBeach1

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