Germany increases recoveries in Cum-Ex and Cum-Cum tax fraud investigations

Efforts to recover funds lost to Cum-Ex and Cum-Cum tax fraud schemes are progressing in Germany, according to a report from the Federal Ministry of Finance. In Cum-Ex cases, 208 proceedings have been legally concluded, resulting in the recovery or rejection of approximately 3.57 billion euros in capital gains tax and solidarity surcharges. In Cum-Cum cases, 96 proceedings have been concluded, with the state recovering or withholding 840 million euros.

Despite these gains, critics note that the recovered amounts represent only a fraction of the estimated 28.5 billion euro total damage. These schemes involved shifting stock portfolios around dividend dates to claim tax refunds on dividends that were never actually paid.

In a related legal development, the Frankfurt Public Prosecutor's Office has filed charges against four former Commerzbank employees for suspected serious tax evasion. The indictment alleges the individuals—two British nationals, one German, and one American—collaborated to develop and implement Cum-Ex deals in 2008, causing a tax loss exceeding 20 million euros. The transactions involved moving shares with and without dividend rights to exploit tax systems. Commerzbank stated it would not comment on proceedings involving third parties.