Germany Didn’t Pay $1.4B in Refund Claims Tied to Tax Fraud

Germany’s Federal Tax Office didn’t pay out about 1.25 billion euros ($1.4 billion) in tax refund claims related to Cum-Ex tax transactions in the years from 2006 to 2011, according to the Bundestag newsletter.

• The payouts didn’t happen due to ongoing Cum-Ex investigations or because refund claims were withdrawn or rejected by the office.
• The office has recovered capital gains tax of around 54 million euros in four Cum-Ex schemes involving eight refund claims.
• The tax fraud scheme overall is estimated to have cost the German government 10 billion euros in lost revenue.

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