Prof. Dr. Christoph Spengel Photo credit: Siegfried Herrmann

Prof. Spengel participates in federal hearing

Finance Committee meets on the topic of cum-ex and cum-cum transactions

Prof. Spengel, holder of the Chair of Business and Taxation II, participated in the public hearing of the Finance Committee of the German Bundestag on September 9, 2020 as an expert witness. The de novo hearing covered the refunds of capital gains tax expenses that have not been paid in the first place, implemented through so-called cum-ex and cum-cum transactions. Prof. Spengel had played a crucial role in the uncovering of these practices, which he has referred to as the “greatest tax scandal in the history of the Federal Republic”.

According to him, these types of transactions are still possible and are still being practiced – even though the capital gains tax deduction procedure has already been adjusted. “The German State looses billions of euros yearly or rather capital gains taxes are being refunded without having been collected in the first place,” explained Spengel. He referred to this as an “intolerable condition” and demanded cum-ex and cum-cum transactions to finally be prevented. However, other opinions on this matter have also been voiced during the hearing.

Click here to access a recording of the hearing