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Cum-Ex/Cum-Cum practices: towards a penalization of dividend arbitrage strategies?

Author: Salomé Lemasson  23 November 2021

Rahman Ravelli’s Salomé Lemasson wrote an article that examines current French thinking regarding the criminalisation of dividend arbitrage strategies.

Her piece, entitled “Cum-Ex/Cum-Cum practices: towards a penalization of dividend arbitrage strategies?’’ was published by France’s Dalloz Actualité.

It explains that although France has not been as aggressive as Germany in tackling dividend arbitrage strategies, it is now looking to crack down on the practices.

Salomé outlines how such practices work and explains that Cum-Ex trading has not been technically possible in France since the abolition of the tax credit there in 2005. But she emphasises that it is possible for a non-French resident title owner to escape the withholding tax through Cum-Cum transactions.

The article, which was written with fellow lawyer Mathieu Valeteau, details the measures that are in place for France to combat dividend arbitrage. It considers the possible effect of the removal of the French tax administration’s exclusive right to file criminal complaints for tax fraud, which is known as the “Bercy Lock".  

Salomé concludes that market participants would be wise to assess their exposure to tax and criminal risks arising from any possible involvement in dividend arbitrage strategies. She offers advice for those who may become implicated in an investigation.

To read Salomé's article visit Dalloz Actualité

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Salomé Lemasson

Of Counsel Head of EU Business Crime and Regulatory Practice Group

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Salomé works on Europe’s most challenging and significant white-collar and complex crime cross-border cases. She leads Rahman Ravelli’s EU Business Crime and Regulatory Practice Group, representing and advising companies and individuals in high-stakes investigations.

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