Author: Joshua L. Ray 9 July 2021
With Cum-Ex investigations now involving more countries, Rahman Ravelli’s Joshua Ray wrote an article alongside Howard Fischer, Partner at New York-based Moses and Slinger, examining the likelihood of cases being brought in the US.
Josh and Howard's article, “Europe’s Cum-Ex Scandal – What to Expect When US Authorities Join the Party’’, was published by the New York Law Journal.
The article gives a summary of events so far in the share-selling tax scandal. It explains how shares were traded in a way that enabled more than one party to claim tax rebates – and how those rebates cost the treasuries of some countries billions of euros.
Josh and his co-author Howard Fischer make comparisons between Cum-Ex and the US practice of American depositary receipts (ADRs), which is a similar dividend arbitrage scheme. The US Securities and Exchange Commission (SEC) has concluded settlements totalling more than $450 million relating to ADRs.
Josh believes the SEC will be aggressive in pursuing those it believes are responsible for Cum-Ex, via criminal investigations and civil enforcement. According to him, the ADR cases show that the US authorities can and will pursue cases against cross-border transactions that result in lost tax revenue to foreign governments.
His article concludes by explaining the reasons why the US could be set for increasing numbers of Cum-Ex cases.
Josh and Howard's article featured on the New York Law Journal. (Subscription required)
Joshua Ray represents individuals and corporates in complex investigations, prosecutions and regulatory actions regarding market manipulation and multijurisdictional matters involving fraud, bribery and money laundering.