Regional court Wiesbaden (archive picture): Trial start with obstacles
Photo: Fredrik von Erichsen / DPA
For years, investors had capital gains tax reimbursed several times in so-called cum-ex stock transactions - and so the treasury suffered billions in damages.
A process has now begun at the Wiesbaden Regional Court to investigate the »Cum-Ex« share deals under criminal law.
The judiciary is negotiating the charges brought by the Frankfurt Public Prosecutor's Office against the lawyer Hanno Berger and two former employees of a bank (Ref .: 6 KLs - 1111 Js 27125/12).
But Berger, who is considered the architect of the cum-ex business at the expense of the state treasury, did not appear at the beginning.
An arrest warrant from the Wiesbaden Regional Court has been issued against him.
Berger denies the allegations and has been in Switzerland for years.
The judiciary sees his move as an escape, as he apparently knew that Switzerland would not extradite to Germany because of tax offenses.
"An extradition to Germany is out of the question," said Berger's lawyer Kai Schaffelhuber of the dpa news agency before the start of the trial.
The decisive factor here is how Switzerland assesses the situation.
Berger did not appear at the start of the trial in Wiesbaden because he was not properly invited.
The court regards business as professional gang fraud
The Frankfurt Higher Regional Court regards cum-ex share transactions not only as tax evasion, but also as commercial gang fraud.
For this reason alone, Berger faces a prison sentence of up to ten years.
In "Cum-Ex" transactions, investors used a loophole in the law to cheat the state for billions over the years.
Around the dividend cut-off date, shares with (“cum”) and without (“ex”) dividend entitlements were shifted back and forth between several participants.
Tax offices reimbursed capital gains taxes that were not paid.
In 2012 the tax loophole was closed.
Serious tax evasion faces up to ten years imprisonment.
The Frankfurt Public Prosecutor's Office had already made its indictment public in May 2018.
However, it was examined for a long time and the Wiesbaden trial was postponed several times due to the corona pandemic
mic / dpa
