taz.de
Cum-Ex Tax Fraud Continues Despite 2012 Law Changes
Former German Cum-Ex investigator Anne Brorhilker claims that Cum-Ex and Cum-Cum tax fraud schemes, which cost the German government an estimated €38 billion, continue despite a 2012 law change, hindering recovery efforts due to international data transfer and insufficient investigative resources.
- What is the current status of Cum-Ex and Cum-Cum tax fraud in Germany, and what are the most significant obstacles to its prosecution?
- Anne Brorhilker, former lead investigator for Cum-Ex tax fraud cases, asserts that this financial crime persists despite a 2012 law change. She cites a 2016 foundation used for Cum-Ex deals as evidence and estimates that billions of euros in tax revenue were lost. The low risk of detection for banks and the movement of data to jurisdictions with weaker legal frameworks hinder investigations.
- How does the international dimension of Cum-Ex and Cum-Cum schemes impact the ability of German authorities to recover stolen tax revenue?
- Brorhilker's claims highlight the ongoing challenge of prosecuting complex financial crimes like Cum-Ex and Cum-Cum. The challenges include international cooperation, data protection, and the expertise needed to investigate sophisticated schemes. These issues result in slow progress in recovering stolen taxes, with only a fraction of the estimated losses recouped.
- What systemic changes are needed within Germany's legal and financial systems to more effectively combat large-scale financial crimes such as Cum-Ex and Cum-Cum?
- Germany's insufficient resources and coordination among agencies handling financial crime investigations impede progress. The lack of specialized prosecutors and the movement of data to other countries significantly hinder effective prosecution. This calls for a centralized agency to enhance investigative capacity and cross-border cooperation. The current situation allows large-scale tax fraud to continue.
Cognitive Concepts
Framing Bias
The article frames the Cum-Ex scandal as an ongoing, massive, and largely unpunished crime. The headline and the repeated emphasis on the scale of the fraud ( "größter Steuerraub", billions of Euros lost) and the slow progress in recovering funds create a narrative of systemic failure and widespread criminality. Brorhilker's strong statements and criticisms are prominently featured, reinforcing this negative portrayal of the situation. The inclusion of specific examples, such as the 2016 foundation, further reinforces the narrative of continued criminal activity.
Language Bias
The article uses strong, emotive language throughout, such as "Steuerraub" (tax robbery), "größte Steuerraub in der Geschichte" (largest tax robbery in history), and "ausrauben" (rob). These terms strongly condemn the actions and could influence the reader's perception. While accurate in terms of the scale of financial losses, these loaded words create a more sensationalist and biased tone. More neutral alternatives could include phrases such as "substantial tax losses", "significant tax evasion", and "illegal tax practices". The repeated use of terms like "kriminell" (criminal) and "kriminelle Energie" (criminal energy) contributes to a negative portrayal of the actors involved.
Bias by Omission
The article focuses heavily on the perspective of Anne Brorhilker, a former chief investigator of Cum-Ex cases. While it mentions the government's response and the legal battles, it lacks perspectives from banks, other involved parties, or individuals who might defend the actions taken. The article also omits discussion on the complexities of international tax law and the challenges of cross-border investigations, which could contextualize the difficulties in recovering the lost funds. The lack of detailed information on the specific legal and regulatory changes implemented after 2012 might leave the reader with an incomplete understanding of their effectiveness.
False Dichotomy
The article presents a somewhat simplified dichotomy between the criminals and the state. While it acknowledges the complexities of the case, the narrative mostly frames the banks and involved parties as purely malicious actors with little to no consideration of any mitigating circumstances or differing interpretations of the law. This simplifies the issue by painting a picture of clear-cut wrongdoing without exploring the nuances of the legal and financial systems.
Sustainable Development Goals
The Cum-Ex scandal represents a massive case of tax fraud, costing the German state billions of euros. This siphoning of public funds exacerbates existing inequalities by disproportionately impacting public services and social programs that benefit vulnerable populations. The fact that those involved have largely avoided serious consequences further deepens this inequality.