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Hanno Berger: Eight years in prison for Cum


The Bonn regional court has sentenced lawyer Hanno Berger to eight years in prison for tax evasion. He is considered the architect of the illegal cum-ex tax transactions.

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Attorney Berger (photo from June 2022): years of imprisonment

Photo: Kai Pfaffenbach / REUTERS

He is regarded as a key figure in the biggest tax scandal in Germany: the district court in Bonn sentenced lawyer Hanno Berger to eight years in prison.

The court ruled that the 72-year-old was guilty of three counts of tax evasion.

The verdict is not yet legally binding.

The possible maximum was 15 years, the prosecution had called for nine years in prison.

The defense had admitted misconduct on the part of their client, but the extent of this was significantly less than that presented by the public prosecutor.

The crimes spanned the period from 2007 to 2011.

Berger is the best-known protagonist of the business model, which the Federal Court of Justice classified as a criminal offense in 2021.

He advised banks, funds and investors on the construction of transactions and recruited wealthy clients through his network.

He made millions for it.

He used to be a civil servant in the Hessian tax administration, later he changed sides and provided the financial actors with in-depth knowledge of tax law.

At the end of 2012, tax expert Berger fled to Switzerland, where he was able to evade German justice for years.

It was only delivered to Germany in February 2022.

Parallel to the Bonn proceedings, another criminal case is pending against him before the Wiesbaden district court, where he is accused of further cum-ex offenses.

In the transactions, shares with (»cum«) and without (»ex«) dividends were moved between different trading partners around the dividend date.

Due to the confusion, the capital gains tax once paid was reimbursed several times by the tax authorities.

Berger did not invent the business model.

However, he is regarded as a pioneer so that Cum-ex could be operated on a large scale in Germany.

The German state lost a double-digit billion euro amount as a result of cum-ex.

"Hanno Berger was one of the central minds behind the illegal cum-ex business" and "a kind of spin doctor," said Gerhard Schick from the citizens' movement Finanzwende in Berlin, with a view to the Bonn court decision.

"He made Cum-ex big among high net worth investors."

Schick called for more speed in the processing of the tax scandal.

"We're in the eleventh year since such transactions were stopped, and despite more than 1,500 accused, the accused can be counted on a few hands," he criticized.

The cum-ex clarification went at a snail's pace for years, "because many preferred to sweep the topic under the carpet".

The processing of the largest tax scandal in the Federal Republic is likely to take years.

In order to be able to cope with the flood of foreseeable processes, a new building is being built in Bonn's neighboring town of Siegburg just for future cum-ex processes.

The building is scheduled for completion in 2024.


Source: spiegel

All business articles on 2022-12-13

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