Progress in the investigation and recovery efforts related to the “Cum-Cum” tax fraud scandal remains slow, according to recently released figures. A response from the Federal Ministry of Finance to a query from the Green Party, detailed in a report by the Handelsblatt, reveals that just 81 cases have concluded with legally binding judgments. A further 253 suspected cases are currently under investigation.
The concluded cases have resulted in the recovery of €226.7 million in taxes. The Ministry estimates the potential tax volume still at risk across the 253 open investigations amounts to €7.3 billion, bringing the currently known damage to roughly €7.5 billion. However, the total extent of the “Cum-Cum” scandal’s impact remains “not seriously assessable” according to the Federal Government. The scheme, in simplified terms, involved the improper reimbursement of taxes related to stock trading transactions.
Federal Minister of Finance Lars Klingbeil (SPD) recently announced plans to extend the retention period for accounting documents back to ten years, an effort aimed at facilitating the ongoing investigations. The previous coalition government had shortened this period to eight years. In its response to the Green Party inquiry, the Finance Ministry stated that it is currently examining “necessary measures to secure the tax base and combat tax evasion and tax avoidance” including “potentially extending the retention periods.
Katharina Beck, the Green Party’s spokesperson for finance policy, has criticized this approach as overly vague. She argues that the government’s actions don’t align with Minister Klingbeil’s announced intentions regarding document retention. The Green Party accuses the government of failing to pursue the investigation with sufficient vigor. Beck emphasized the need for a “decisive approach by the federal government to secure evidence and all further necessary measures to effectively clarify” the ongoing matter, given the severity of the offenses and the considerable financial damage inflicted on society.
