The process of addressing the “Cum-Cum” tax fraud scandal is progressing slowly, according to recently released figures. A response from the Federal Ministry of Finance, in reply to an inquiry from the Green Party, reveals that only 81 cases have been closed with final rulings, while 253 suspected instances remain under investigation. The information, reported by Handelsblatt, highlights ongoing concerns regarding the full extent of the financial damage.
In the cases that have concluded, taxes totaling €226.7 million have been reclaimed. The Ministry estimates the potential tax shortfall related to the remaining 253 open investigations to be €7.3 billion, bringing the currently known total damage to approximately €7.5 billion. However, the federal government states that the overall scale of the “Cum-Cum” scheme’s impact cannot be reliably assessed. “Cum-Cum” transactions involved the premature reimbursement of taxes to investors who were not entitled to receive them.
Federal Minister of Finance Lars Klingbeil recently announced plans to reinstate a ten-year retention period for business records, reversing a previous reduction to eight years in an effort to facilitate investigations. The Ministry’s response indicated that measures to safeguard the tax base and combat tax evasion and avoidance are currently under review, specifically including the potential extension of retention periods.
Katharina Beck, Green Party spokesperson for financial policy, has criticized this announcement as lacking specificity. She stated that the government’s stance on a legislative change regarding the retention periods remains vague, despite Minister Klingbeil’s earlier declaration. The Green Party argues that the government is not pursuing the investigation with sufficient vigor, emphasizing the severity of the crimes and the substantial losses incurred by society and calling for decisive action to secure evidence and implement further necessary measures for a comprehensive investigation.