LBBW in sight: state investigates millions of fraud by cum-cum!
LBBW in sight: state investigates millions of fraud by cum-cum!
Rems-Murr-Kreis, Deutschland - The Landesbank Baden-Württemberg (LBBW) is increasingly faced with explosive allegations. The Stuttgart public prosecutor's office has already become active due to its entanglements in Cum-Ex and Cum-Cum-Cum business. The LBBW emphasizes that it has paid taxes in the millions and therefore there are no irregularities. However, as the Citizens' Movement Finanzwende e.V. reveals, other financial institutions in Baden-Württemberg-including numerous savings banks and Volksbanken-are also involved in similar machinations.
What are cum-cum business? This is a special type of tax design that mainly helps foreign investors to avoid tax obligations in Germany. These business use domestic banks as an intermediary to reclaim capital income taxes that have not been paid legally. In the past, there have been Cum-Ex cases in Germany that led to numerous criminal convictions. One example is the charges against former managers of the German Pfandbriefbank, which were issued on the basis of cum-cum transactions, as the law firm Eversheds Sutherland reports.
The legal framework
In fact, the legal landscape is complex and the public prosecutors have focused on financial transactions such as Cum-Cum and their variants. A clear sign of increasing seriousness is the establishment of new investigative groups in order to clearly take responsibility for actors behind these business. Financial institutions that provide involvement in CUM-CUM must therefore adapt to possible legal consequences if the whole thing turns out to be illegally what the German tax authorities have been classified as abuse since July 2021.particularly blatant: the tax money caused by Cum-Ex and Cum-Cum, which has been lost to the German state and its citizens, is estimated at over 30 billion euros. The economy and the judiciary are faced with the challenge of consistently enforcing these reclaims. A conviction about Cum-Cum would not have happened yet, but the Frankfurt Higher Regional Court shows with its decisions that these business is being viewed critically-especially the associated tax evasion.
where does the path lead?
As the latest events around LBBW shows, there could be further investigations into numerous banks and financial institutions that were involved in the near future. Experts estimate that if the investigation is comprehensively uncovered, additional tax revenue of around 28.5 billion euros could even be possible. The need for action is greater than ever for the institutes. You should not only check your own business, but also carry out training for your employees and, if necessary, initiate internal studies.
The processing of the cum-ex and cum-cum business is expected to take years, and one thing is certain in the light of legal developments: the time of the "Then I just continue" is over. It is time to take responsibility and not only to examine your own legal basis, but also to actively tackle possible grievances.
The LBBW, which is now in the line of fire, provides an example of the challenges that the financial institutions are facing in Germany. The coming weeks and months will show how the situation will develop and whether a turn in the handling of such shops is actually heralded.
ZVW reports that the LBBW has applied a certain patch itself. In addition, Eversheds Suthherland Important findings on the risks and regulations related to cum-cum- shops. And if you want to learn more about the legal background and punishment, juhn
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| Ort | Rems-Murr-Kreis, Deutschland |
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