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36:
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gave tax advice which was used to justify the legality of the scheme. In
November 2019, Ulf Johannemann, a former Freshfield partner who was head of the international tax department, was arrested. In January 2024 Ulf Johannemann was found guilty of aiding and abetting a multiyear dividend tax fraud
152:
calls a "cum-ex" trade: The participants in the network would lend each other shares in large companies, so that to tax authorities there would appear to be two owners of the shares, when there was only one. The bank that was used in stock trading would then issue a "confirmation" to the investor
153:
that tax on the dividend payment had been paid, without it being done. "It's a bit like parents claiming a child benefit for two – or more – children when there is only one child in the family." writes
Correctiv. This practice was outlawed in 2012.
139:
is the hardest hit country, with around $ 36.2 billion withdrawn from the German treasury. Estimated losses for other countries include at least €17 billion for France, €4.5 billion in Italy, €1.7 billion in
Denmark and €201 million for Belgium.
163:
Authorities have since deemed the reclaims illegitimate, but at the time of the trades, this was less black and white, and a vast network of traders, analysts and lawyers were thought to be involved in the practice throughout the continent.
346:
202:
In June 2020, it was reported by investigators that such transactions took advantage of
European rules on the taxing of dividends, which made it possible to get refunds by using a combination of short sales and future transactions.
242:
The Danish State
Commissioner August Schäfer first warned of the practice in 1992, after the testimony of five whistleblowers. However, the practice remained widespread until an administrative assistant in the German
608:
714:
634:
156:
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.
605:"EBA publishes its inquiry into dividend arbitrage trading schemes ("Cum-Ex/Cum-Cum"), and announces a 10-point action plan to enhance the future regulatory framework | European Banking Authority"
336:
690:
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Financial institutions in essence allowed two parties to simultaneously claim ownership of the same shares, therefore allowing both to claim tax rebates to which they were not entitled.
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498:
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scheme discovered by them in 2017. A network of banks, stock traders, and lawyers had obtained billions from
European treasuries through suspected fraud and speculation involving
815:
750:
RAPPORT D’INFORMATION DÉPOSÉ en application de l’article 145 du Règlement PAR LA MISSION D’INFORMATION COMMUNE sur le bilan de la lutte contre les montages transfrontaliers
604:
763:
295:. Investigations revealed that since 2012 Investec had provided the Dutch broker Frank Vogel with more than €12 billion to facilitate his alleged tax arbitrage scheme.
630:
521:
682:
368:
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Various banks and other financial institutions were involved in these alleged trades. Among those named in the leaked files include
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of the
National Assembly has also published a report on the results of the fight against cross-border malicious
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221:
337:"Cum-Ex trading scandal in Germany – A huge challenge for financial institutions and the insurance industry"
866:
268:
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trading schemes. According to the report, in some countries, the cum ex deals are not criminal offenses.
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715:"CumEx Files": a citizen collective files a complaint with the national financial prosecutor's office
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851:
553:
846:
788:
304:
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announced a 10-point action plan to enhance the future regulatory framework surrounding dividend
90:
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and sentenced to three years and six months in jail in a landmark ruling by a
Frankfurt court.
816:"The CumEx Files (Part Three): Investec's multibillion-euro backing for legendary 'tax evader'"
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373:
284:
749:
559:
264:
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was found to have ignored warnings on multiple occasions of a tax loophole concerning
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filed a complaint against X for fraud and aggravated tax fraud laundering with the
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71:
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35:
491:"A landmark German tax fraud case could ripple through the finance industry"
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149:
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764:"Investec implicated in probes into the world's largest tax fraud (Part 1)"
631:"EU-Behörde über Cum-Ex-Deals: Kein Austausch zwischen Aufsichtsbehörden"
428:
288:
148:
The network stole several billion Euros from the treasury, through what
135:. The five hardest hit countries may have lost at least $ 62.9 billion.
554:"Former head of tax at Freshfields charged over illegal rebate scandal"
136:
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is an investigation by a number of
European news media outlets into a
61:
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noticed abnormally large tax rebate claims from a US pension fund.
522:"Former Freshfields lawyer arrested over German tax scam: sources"
114:
20:
280:
683:"Hedge Fund Founder Fears He Can't Pay Legal Bills in Tax Case"
657:"Danes Failed to Heed Cum-Ex Warnings Before Hedge Fund Trades"
404:[Norway hit by European tax scandal] (in Norwegian)
426:["CumEx Files": tax fraud for 55 billion euros].
424:""CumEx Files": la fraude fiscale Ă 55 milliards d'euros"
735:
Bilan de la lutte contre les montages transfrontaliers
85:
77:
67:
57:
42:
552:
460:"Germany fears huge losses in massive tax scandal"
211:At the end of October 2018, the Socialist deputy
19:For the Mexican consortium of universities, see
587:"Freshfields 'Cum-Ex' Scandal Partner Arrested"
520:Sims, Tom; O'Donnell, John (28 November 2019).
8:
28:
402:"Norge rammet av europeisk skatteskandale"
34:
27:
226:. A parliamentary information mission on
814:van Rensburg, Dewald (28 October 2021).
762:van Rensburg, Dewald (21 October 2021).
331:
329:
327:
325:
321:
217:National Financial Prosecutor's Office
722:October 30, 2018 and November 6, 2018
611:from the original on 5 September 2020
567:from the original on 11 December 2022
470:from the original on 13 November 2018
453:
451:
400:Vartdal, Ragnhild (18 October 2018).
381:from the original on 18 December 2018
7:
501:from the original on 15 October 2019
436:from the original on 20 October 2018
349:from the original on 26 October 2018
432:(in French). AFP. 18 October 2018.
693:from the original on 7 August 2020
663:from the original on 5 August 2020
14:
551:Storbeck, Olaf (9 January 2020).
489:Smith, Elliot (14 October 2019).
191:In 2010, in an audit report, the
637:from the original on 23 May 2020
119:Countries affected by the fraud
81:Loss of roughly $ 63.2 billion.
377:(in Danish). 18 October 2018.
169:Freshfields Bruckhaus Deringer
1:
458:Hill, Jenny (9 June 2017).
193:Danish Ministry of Taxation
888:
245:Federal Central Tax Office
177:European Banking Authority
18:
16:European financial scandal
167:The prestigious law firm
46:18 October 2018
33:
872:2017 in economic history
857:Investigative journalism
251:Implicated institutions
187:Danish dividend scandal
120:
591:Law.com International
371:[tax fraud].
232:financial engineering
118:
752:Assemblée nationale
737:Assemblée nationale
345:. 8 February 2017.
30:
862:Financial scandals
532:on 25 January 2020
305:Dividend stripping
207:Lawsuits in France
121:
795:. 21 October 2021
789:"CumEx Files 2.0"
285:Ernst & Young
175:In May 2020, the
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633:. 12 May 2020.
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369:"Skattesvindel"
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265:HypoVereinsbank
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257:Macquarie Bank
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133:dividend taxes
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105:/cumex-files-2
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823:. Retrieved
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534:. Retrieved
530:the original
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406:. Retrieved
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383:. Retrieved
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197:dividend tax
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124:
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97:/top-stories
25:
747:(in French)
732:(in French)
712:(in French)
310:Sanjay Shah
293:Freshfields
228:tax evasion
220: [
125:CumEx-Files
72:Tax evasion
29:CumEx-Files
852:News leaks
841:Categories
825:30 October
799:21 October
773:21 October
719:La Tribune
536:25 January
505:15 October
474:29 October
440:20 October
408:18 October
385:18 October
316:References
273:Maple Bank
50:2018-10-18
847:Tax fraud
793:CORRECTIV
697:6 October
667:6 October
641:6 October
615:6 October
353:6 October
238:Discovery
181:arbitrage
150:Correctiv
129:tax fraud
91:correctiv
691:Archived
661:Archived
635:Archived
609:Archived
571:30 April
565:Archived
499:Archived
468:Archived
464:BBC News
434:Archived
429:Le Point
379:Archived
347:Archived
299:See also
289:Investec
58:Location
526:Reuters
291:, and
137:Germany
86:Website
78:Outcome
48: (
144:Method
62:Europe
768:Fin24
224:]
99:/2021
21:CUMEX
827:2021
801:2021
775:2021
699:2020
669:2020
643:2020
617:2020
573:2023
538:2020
507:2019
495:CNBC
476:2018
442:2018
410:2018
387:2018
355:2020
281:KPMG
123:The
93:.org
68:Type
43:Date
103:/21
101:/10
95:/en
843::
818:.
791:.
766:.
685:.
659:.
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589:.
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524:.
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450:^
374:DR
339:.
324:^
287:,
283:,
279:,
275:,
271:,
267:,
263:,
259:,
234:.
222:fr
199:.
829:.
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619:.
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107:/
52:)
23:.
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