Cum-cum transactions continue to raise questions for banks, investors and prosecuting authorities years after they took place. The central questions are whether withholding tax credits were lawfully claimed and what follows when the tax treatment of a transaction is subsequently reassessed. Those affected need to identify any duty to correct earlier tax returns in good time and carefully assess the criminal-law implications. The article examines recent court decisions, the limits of voluntary disclosure and the issues they raise for the defense.
Germany acquired electronic data from Dubai in June 2021 in order to uncover tax crimes. Several years ago, Germany had already purchased so-called data CDs from Switzerland, which led to the initiation of a large number of criminal tax proceedings.
At the beginning of September 2019, banks in Frankfurt were searched again. According to media reports, the public prosecutor’s office is said to have expanded its criminal investigations against bank employees in the Cum-Ex proceedings.
In the last few months Ebay has unmistakably requested its commercial traders to prove that the sales and income generated through online trading have been declared to the tax office.
On 19 July 2019, the Cologne Fiscal Court ruled that the multiple refund of capital gains tax withheld and paid only once is not permitted. The case is not yet final. The court has admitted an appeal to the Federal Fiscal Court. Nevertheless, the ruling now is a signpost for further Cum-ex proceedings.
The fiscal court Kassel has decided that the damage, which occurred by counterfeit money, can be deducted under circumstances taxable as income-related expenses.
Commerzbank Germany Investigations in the Cum-Ex Proceedings
Turnover Tax (VAT) carousels and missing traders in Germany
counterfeit money