The damage that fraudsters due to the trade with so-called phantom shares for the state have done, is not yet to quantify. The Ministry of Finance shall examine the effects even after the media had reported about the new mesh. The Cologne public Prosecutor investigates allegations that bankers and stock traders may have millions of dollars of German taxpayers ‘ money by devious means. Federal Finance Minister Olaf Scholz (SPD) has promised a rapid response.
The Süddeutsche Zeitung, and WDR had on Wednesday about the alleged tax fraud reported. It is in the U.S.-traded shares of Depository receipts (ADR), which must normally be stock. The trade with these spare seem instead of the actual stock is cheaper and less time-consuming. In many cases, ADR should share his papers but has been spent, without that the banks owned the shares in question-the so – called Pre-cor, hence the term Phantom. The owner will then have the German authorities not paid capital gains tax on dividends.
The Minister of Finance promised in the Bundestag, the government wants to do anything against it, “that people are trying in any way to commit tax fraud”. There should be, in this respect, new developments, must be the government with laws, or with further action afterwards, said Scholz: “We will proceed with all the Rigour and all of our facilities against any new Form of abuse or illegality.” The Ministry of Finance had stopped in a first reaction, by the adoption of a digitized reimbursement procedures, the potential Criminal might have made the not entitled to a refund particularly easy.
“Angry and stunned”
Scholz is under pressure to act. In the coming weeks, the Finance Committee wants to deal with the phantom shares and also to the Minister to hear. A commitment for the meeting on may 12. December, said the Green-financial politician Gerhard Schick. For the session a week earlier, the Greens presented a catalog of almost a dozen questions. You don’t want to find out why, the German banking Supervisory authority and the Ministry of Finance came to the new tricks on the track.
Green party leader, Anton Hofreiter said: “In our eyes, it is a criminal Act.” The Federal government should finally be able to actively look for such violations of the law. The opportunities you have. His colleague, Mr Schick said “angry and stunned” about the operations, which is a further development of the tax tricks in the Wake of the Cum-Ex-posed scandal. Schick sees in the first line of the previous Minister of Finance, Wolfgang Schäuble, the responsibility, criticized, but also its successor Scholz.
In the United States is no longer
Actually, an independent special Prosecutor is needed now, as requested by the financial policy spokesman of the FDP group in the Bundestag, Florian Toncar, on Thursday. The Left-hand-a financial expert, Fabio De Masi wants the Federal government analyzes the tax office and the financial Supervisory authority BaFin all refunds around Dividend dates. Needed a European financial in addition, the FBI and a corporate criminal law, with the banks more accountable and stolen can be recovered tax money.
On the domestic banking side, especially the Deutsche Bank, which had been involved in ADR shops. “We know that it relates to Deutsche Bank,” said Schick. The Institute said: “Deutsche Bank has stopped in the year 2014, Pre-Release ADRs on the dividend record date, because there were concerns of potential abuse.” 2016 have taken the Bank, then the concerns of the U.S. securities and exchange Commission SEC to the occasion, “to finish their remaining activity with Pre-Release ADRs voluntarily,” a spokesman said.
In the U.S. investigations by the SEC have been running for longer. In November, Citibank agreed to a settlement, about 38.7 million US dollars (33.3 million Euro), because the ADRs were not deposited with real shares and, thus, specific values. Two daughters of the Deutsche Bank (DBTCA and DBSI) agreed in July to a comparison of even more than 75 million US dollars (65.7 million Euro). As in Germany, for the tax certificates in ADR securities are mostly banks responsible, they should, if necessary, be taken now in liability.