German ‘cum-ex’ tax fraud mastermind gets eight-year sentence
A German tax lawyer, alleged to have masterminded one of Germany's biggest post-war frauds, has been sentenced to eight years in jail.
Hanno Berger, a 72-year-old former tax inspector turned legal tax expert, is the highest-profile professional to be convicted after years-long investigations into the cum-ex dividend stripping scheme. Some experts estimate the share-trading scandal has cost German taxpayers around €10 billion (CHF9.9 billion).
Berger fled to Switzerland in 2012 before being extradited to Germany in February this year. He was also ordered to repay more than €13 million as he became the 11th person convicted in Germany over the scandal after an eight-month trial.
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Swiss court confirms extradition of German ‘cum-ex’ fraud suspect
The trading scheme involved banks and investors claiming multiple bogus tax rebates on dividends, aided by now-closed loopholes in their tax systems and the failure of authorities to spot and halt the practice.
In closing arguments at the Bonn court last week, prosecutors accused Berger of orchestrating tax scams that siphoned €278 million from German taxpayers.
Berger rejected accusations of tax fraud, although he conceded he should have paid better heed to a 2009 finance ministry letter that expressed concerns about the “tax optimisation scheme”. He also insisted some transactions were legal at the time. A lawyer representing Berger said his client would study the judgment before deciding his next steps.
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