Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Banks Lacked ‘Integrity’ to Police Cum-Ex Trades, Official Says

Nov. 20, 2019, 12:54 PM

German authorities’ reliance on banks to police transactions when issuing certificates for tax refunds was a crucial element in the controversial Cum-Ex trades that cost the government billions of euros.

Three tax officials’ testified this week gave a Bonn court an idea of where that trust could lead. The interplay of complicated tax-collection procedures and clever trading strategies let investors dip into government coffers -- with the help of their custodian banks.

The government simply trusted the banks would handle things properly when deciding who qualified for a refund, the witnesses said at a trial of bankers accused of benefiting ...