With Cum-Ex investigations in a number of countries gathering momentum, an increasing number of individuals and financial institutions are likely to come under scrutiny. Their response to this will be vitally important.
Cum-Ex is a multinational tax fraud probe that is focused on a large volume of transactions before 2012 that exploited a loophole on dividend payments. This enabled a number of parties to claim the same tax refund. Banks and stockbrokers traded shares in a way that disguised the identity of the shares’ owner so that more than one party could claim tax rebates on capital gains tax, even though that tax had only been paid once.
This created huge profits for those involved but deprived countries’ treasuries of tens of billions of euros in tax revenue. The investigations into this that are either ongoing or planned could involve many that were involved in banking, investment or asset management at the time.
As a firm, we represent financial institutions, their officers and personnel who are affected by Cum-Ex investigations. We were one of the first law firms to identify Cum-Ex as a major issue and recognise the implications for the financial services industry and those working within it.
Rahman Ravelli has hands-on experience of Cum-Ex investigations, as well as in-depth expertise and an enviable track record when it comes to managing and defending investigations that cross borders and involve numerous investigating agencies.
The Need for the Right Representation
The scale of Cum-Ex, the complexity of the activity under scrutiny and the range of legal issues involved make it imperative that those who are investigated are represented by those who understand each and every aspect of it.
A specially-tailored defence strategy will be required as soon as the authorities look set to investigate a corporate body and /or its officers. While we cover the major aspects of Cum-Ex in our detailed guide (see below), it is worth emphasising that most transactions at the time were considered by many to be sensible, typical market behaviour. But with investigations gaining pace and, in some cases, involving more than one country, those coming under scrutiny may have to contend with a fresh retrospective analysis of previous actions - which may take a different view - together with added issues such as extradition and mutual legal assistance between countries.
This all means, that those facing investigation need to get their house in order immediately and seek the best available legal advice. We are known for providing a rapid response to existing or potential clients, whatever the circumstances.
To learn more about the issues involved in Cum-Ex and meet our specialist team, please read our detailed guide for financial institutions.
Further Reading:We have an in-depth guide relating to this subject which can be read here:
▸ The Cum-Ex Guide for Financial Institutions
If you would like to speak to our specialist team, we can be contacted on: +44 (0)203 947 1539.