The scale of the financial damage caused by the so-called “cum-ex” tax scandal is much higher than previously thought, according to information provided to Reuters, ARD, Die Zeit and several other news organizations.
For the last few years, German authorities have been investigating hundreds of the tax fraud cases, where banks and stockbrokers rapidly traded shares with (“cum”) and without (“ex”) dividend rights, with the aim of being able to conceal the identity of the actual owner and allow both parties to claim tax rebates on capital gains tax that had only been paid once.
Now, reports published on Thursday morning say that at least 10 other European countries beyond Germany have been affected by the tax fraud practices, and that the damage caused to state treasuries could be as high as €55.2 billion ($63.4 billion).
Spain’s Santander bank is the latest big lender to be caught up in the scandal. According to