10.06.2024 Withdrawal of tax credit in the wake of alleged cum-ex schem ... If it has been revealed during an external tax audit that a large portion of dividend payments from shares were part of so-called short sales and thus the withholding of capital gains tax appears doubtful (here: as being in connection with cum-ex trading), the tax office is entitled to revoke the tax credit granted earlier and reclaim the tax refund from the taxpayer. This was decided by the Tax Court of Hesse following a complaint regarding the suspension of payment. Categories: Tax CourtKeywords: cum-ex, Capital gains taxation
22.04.2024 Recovery of withholding tax credited in the course of „cum/e ... The Hamburg Tax Court decided that the withdrawal of the refund or the credit of withholding tax in the wake of cum-ex schemes due to fraudulent misrepresentation is also possible if a third party committed the fraud. Categories: Tax CourtKeywords: cum-ex
31.05.2022 Update: Cum-ex trading is tax evasion In its decision of 28 July 2021, the Federal Court of Justice held that claiming a refund or credit of withholding tax in the wake of cum-ex schemes is a criminal act of tax evasion. The proceeds obtained in these illegal transactions and the benefits derived therefrom may be collected. Categories: Tax CourtKeywords: cum-ex, Tax evasion
17.03.2022 Cum-ex deal rejected by Supreme Tax Court for want of benefi ... In a recently published decision, the Supreme Tax Court dealt with so-called cum-ex share transactions. In its judgment the court rejected a "business concept" that sought to "exploit" uncertainties in the clear economic allocation of shares in such a way that withholding tax once withheld might be credited or refunded by the tax authorities twice or even more times. Categories: Supreme Tax Court casesKeywords: cum-ex, beneficial owner, dividend strip ...
16.03.2022 Bundesrat: Draft Bill Organised Tax Evasion The draft bill is being (re-)introduced to combat serious tax evasion executed via organised -"gang"- structures. The current law is limited to organised evasion of VAT and excise duties. Categories: LegislationKeywords: cum-ex, Tax evasion, organised crime
03.12.2020 Germany: Higher penalties for organized tax evasion? The representatives of the German provinces (the upper chamber of parliament - Bundesrat) would like higher penalties for organized tax evasion and further suggest improving the investigation of such crimes. On 27 November 2020 the upper chamber decided to introduce a corresponding bill in the German Bundestag to amend the German Fiscal Code. Categories: From EuropeKeywords: cum-ex, Tax evasion, penalty
