Two former London bankers have been found guilty of tax evasion in the first criminal trial related to ‘cum-ex’ trades. Rob Mason (Forensic Risk Alliance) and Andrew Howard (Ropes & Gray) consider the UK impact.
On 19 March 2020 a German court found two former London-based bankers guilty in the first criminal trial related to ‘cum-ex’ trades. They received suspended sentences totalling 34 months in light of their extensive cooperation with prosecutors. They and a Hamburg-based bank involved with the transactions are also reported to have been required to repay over €190m in illegally obtained earnings.
The case is notable for establishing for the first time that ‘cum-ex’ transactions were ineffective under prevailing German tax rules and that this should have been so obvious to participants that the transactions in question amounted to criminal conduct.
What is cum-ex?...
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Two former London bankers have been found guilty of tax evasion in the first criminal trial related to ‘cum-ex’ trades. Rob Mason (Forensic Risk Alliance) and Andrew Howard (Ropes & Gray) consider the UK impact.
On 19 March 2020 a German court found two former London-based bankers guilty in the first criminal trial related to ‘cum-ex’ trades. They received suspended sentences totalling 34 months in light of their extensive cooperation with prosecutors. They and a Hamburg-based bank involved with the transactions are also reported to have been required to repay over €190m in illegally obtained earnings.
The case is notable for establishing for the first time that ‘cum-ex’ transactions were ineffective under prevailing German tax rules and that this should have been so obvious to participants that the transactions in question amounted to criminal conduct.
What is cum-ex?...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
