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In A Tax Evasion Case A German Court Has Dismissed The Bankers Appeal

On Wednesday, Germany’s top court rejected two British bankers’ appeals against their convictions in a large tax fraud case, saying that the so-called cum-ex transactions they employed were illegal.
The seizure of 14 million euros ($16.5 million) from one of the defendants and roughly 176 million euros ($207 million) from Hamburg-based private bank M.M. was also confirmed by the Federal Court of Justice.
Warburg was right.
The decision establishes a crucial precedent for future cases in the “cum-ex” scandal, which involves hundreds of people.
Between 2007 and 2011, the two British bankers were convicted of various counts of tax evasion.
After agreeing to disclose specific information about the fraud scheme, in which participants swapped shares in order to receive compensation for taxes they had not paid, they were handed suspended sentences.
Throughout their trial, the defendants argued that they had just taken advantage of a legal loophole.
But, federal justices ruled that the strategy was unconstitutional and that there was “no doubt the conduct were premeditated,” according to a statement from the court.
The ruling, according to Warburg, will have “no economic ramifications” for the bank.
The decision will almost certainly have an impact on future trials.
Hundreds of bankers are said to have been implicated in the operation, which cheated taxpayers of billions of euros.

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