Unmasking Cum-Cum and Cum-Ex: Ex-Prosecutor Brorhilker Urges Quick Action Against "Shredder Law"
Lawyer Brorhilker advocates for halting the 'Shredder Law': An ex-prosecutor, Brorhilker, is urging for a halt in the enactment of the 'Shredder Law.' - Halting the "Paper-Destruction Act" - View Articulated by Previous Legal Practitioner Brorhilker
Here's a lowdown on the financial whodunit surrounding Cum-Cum and Cum-Ex transactions straight from the horse's mouth - Anne Brorhilker, the fearless ex-prosecutor with a knack for tackling tax crimes.
As the Cologne Chief Prosecutor and a tireless Cum-Ex hunter, Brorhilker is urging swift action to uncover hidden Cum-Cum cases that could potentially result in hefty tax losses. Thanks to a narrow time frame due to statutes of limitation and shortened recording periods under the guise of bureaucracy reduction, this year serves as a golden opportunity for law enforcement officials to dig deeper.
Brorhilker's Crusade Against Financial Fraud
Brorhilker, who gained notoriety for dismantling the "biggest tax heist in German history," has led over 1,000 investigations in her esteemed career. Her relentless pursuit has led her to raid banks, government offices, and even the chambers of top-ranking politicians. Testifying before the Hamburg committee investigating tax fraud, Brorhilker continues to be a thorn in the side of those attempting to avoid their fiscal responsibilities.
The Perilous World of Cum-Cum & Cum-Ex
Cum-Cum and Cum-Ex transactions entail serial tax evasion on an industrial scale. In a Cum-Ex scheme, investors jointly claim tax refunds or credits for supposedly paid taxes they never actually remitted. Cum-Cum transactions take this deception one step further by absolving the perpetrators of capital gains tax. These activities often intermingle, with offenders using the same stock for both operations.
The financial fallout from these illicit activities is staggering - reports indicate estimated losses of around 10 billion euros for Cum-Ex and a whopping 30 billion euros for Cum-Cum transactions.
Taking Matters into Her Own Hands
Despite the state managing to recoup less than 1% of the losses associated with Cum-Cum transactions, Brorhilker is calling for a tougher stance against those who are fleecing the system. She vehemently opposes the "Shredder Law," which she alleges solely benefits those engaged in dishonest practices.
Honest businesses, on the other hand, have been left feeling the pinch, owing to the extended timeframes for financial authorities and tax custodians, compared to companies. As a result, these aboveboard operations adhere to longer record-keeping periods voluntarily to accommodate potential tax audits. In contrast, the "Shredder Law" only serves to protect those who have something to hide, as they can no longer be pursued.
Zeroing In on Savings Banks
In her pursuit of those culpable in these nefarious transactions, Brorhilker targets savings banks as a focal point. Given their involvement in Cum-Cum trading and structured bond lending, she contends that these institutions have not acted in the public interest – a legal obligation they can scarcely escape.
**
- Anne Brorhilker
- Hamburg
- Financial affairs
- Tax evasion
Insights
In Europe, ongoing investigations and legal actions target Cum-Cum and Cum-Ex transactions, including potential involvement by savings banks and other financial institutions. While Anne Brorhilker is not directly referenced in recent sources, the broader context sheds light on the current pursuit of illicit tax practices:
- Shifting Focus: Recently, German authorities have expanded their scrutiny from Cum-Ex to Cum-Cum transactions. The UniCredit Bank GmbH has acknowledged that tax credits from cum/cum transactions are not recognized by authorities in some cases, with legal challenges ensuing[1].
- German Courts: The Frankfurt Higher Regional Court ruling in March 2025 allowed charges against former bank executives for Cum-Cum tax evasion, marking a landmark decision[1].
- EU Regulatory Response: In an attempt to address the vulnerabilities exploited by Cum-Cum and Cum-Ex schemes, the EU introduced the FASTER Directive, aiming to simplify procedures, cut down on delay, and prevent opportunities for abuse[2].
- Litigation and Recoveries: The outcomes of ongoing trials, such as the Danish dividend tax case, will have a considerable impact on jurisdictions worldwide[1].
- Institutional Impact: Aside from large commercial banks, financial institutions like savings banks (Sparkassen) may face scrutiny if linked to such transactions[1][4].
Key Developments
| Area | Recent Progress ||-----------------------------|-----------------------------------------------------------------------------------------------|| Focus on Cum-Cum | Expanded from Cum-Ex to Cum-Cum, investigated by German authorities[1] || Court Actions | Frankfurt court allows charges against bank executives for Cum-Cum tax evasion[1] || Estimated Tax Losses | Up to €28.5 billion from Cum-Cum transactions[1] || EU Directive | FASTER Directive aimed at streamlining procedures and reducing abuse opportunities[2] || Institutional Impact | Savings banks and others subject to scrutiny if involved in such transactions[1][4] |
- Ex-prosecutor Anne Brorhilker, renowned for her work in uncovering tax fraud, is pushing for quick action against the Shredder Law, a policy she believes benefits financial fraudsters while burdening honest businesses.
- Brorhilker, who has led over 1,000 investigations, including the dismantling of the biggest tax heist in German history, has targeted savings banks as a focal point in her pursuit of those engaged in Cum-Cum and Cum-Ex transactions.
- Cum-Cum and Cum-Ex transactions involve serial tax evasion on an industrial scale, with estimated losses of around 10 billion euros for Cum-Ex and a staggering 30 billion euros for Cum-Cum.
- In Europe, ongoing investigations and legal actions target these illicit tax practices, with the EU introducing the FASTER Directive to streamline procedures and reduce abuse opportunities.
- German authorities have recently shifted their focus from Cum-Ex to Cum-Cum transactions, with the Frankfurt Higher Regional Court allowing charges against former bank executives for Cum-Cum tax evasion, marking a significant milestone in the fight against financial fraud.
