The private bank MM Warburg wants to pay in the course of the first criminal case for cum-ex-tax deals money to the tax authorities. Talks have been going on for some time, so that "all profits made with these transactions are immediately paid to the tax authorities," said the bank's attorney, Christian Jehke, in front of the Bonn district court.
Thus, the Hamburg financial institution would follow the example of other banks, which have also already sought the conversation with the authorities and have paid large sums because of their involvement in "Cum-Ex".
Bank is guilty
Last week, the court had indicated that it sees the targeted multiple tax refunds as a criminal offense. Attorney Jehke said MM Warburg executives never intended to "engage in or promote tax-illiquid business". Nevertheless, he signaled willingness to pay on behalf of the private bank.
In the case of cum-ex-transactions, investors were able to reimburse the once-paid withholding tax on stock dividends with the help of banks several times. For this purpose, they postponed shares among each other around the dividend payment deadline - ie cum and without ex - dividend entitlement. Overall, the state is said to have lost a two-digit billion-euro amount. A judgment in Bonn is expected at the earliest in January 2020.
That's how the trickery worked
Two UK ex-traders are charged with 33 cases of particularly serious tax evasion and one attempt in the period 2006-2011. This should have caused a tax loss of 447.5 million euros. The prosecution had estimated the damage caused by MM Warburg to almost 170 million euros.
The private bank MM Warburg and four other financial institutions are involved as so-called confiscation participants in the proceedings - the banks took part in the business at that time. As compensation for the alleged damage, the court may collect assets from the banks.
