Halt the Shredder Law, Says Former Prosecutor Brorhilker
Stop the 'Shredder Law' – the call from ex-prosecutor Brorhilker - Acknowledged former public attorney Brorhilker advocates halting the proposed "paper destruction law".
Let's dive into the world of financial crimes and the call to action from Anne Brorhilker, a renowned ex-prosecutor and Cum-Ex investigator. Brorhilker, currently co-leading the Citizens' Movement for Financial Reform, addressed the Club of Hamburg Economic Journalists with a sense of urgency.
"Time's a-ticking, not just because of statutes of limitations, but also due to recent changes in retention periods for booking vouchers and receipts disguised under bureaucratic reduction," she stated. This year, Brorhilker urges equal emphasis on uncovering Cum-Cum cases and securing evidence.
The ex-prosecutor gained notoriety by spearheading over a thousand investigations, tackling what is known as the biggest tax heist in German history. Her relentless pursuit led her to search through banks, authorities, and even top politicians' offices. She also shared her insights in the Hamburg inquiry committee on the Cum-Ex scandal.
Cum-Ex versus Cum-Cum: What's the Difference?
Cum-Ex transactions involve banks and investors claiming tax refunds on shares they never paid. Cum-Cum transactions, on the other hand, aim to evade capital gains tax entirely. These transactions are often linked, as perpetrators frequently utilize the same shares in both transactions.
The estimated tax loss for Cum-Ex transactions amounts to around 10 billion euros, while Cum-Cum's estimated loss is close to 30 billion euros. However, the recovery rate for Cum-Cum transactions remains dismal, hovering below 1%.
The Shredder Law: A Thorn in the Side of Justice
Brorhilker calls attention to the "Shredder Law," a piece of legislation that allegedly hinders investigations into complex financial crimes. The law mandates the destruction of certain tax-relevant documents after a specific retention period, making it difficult for authorities to prosecute cases like Cum-Cum and Cum-Ex.
According to Brorhilker, the Shredder Law only benefits those who have acted dishonestly, as honest businesses maintain records for potential audits longer than the required deadline. Meanwhile, those with something to hide can no longer be pursued.
The Focus: Targeting Savings Banks
In her pursuit of Cum-Cum perpetrators, Brorhilker places particular emphasis on savings banks, which she claims have participated in Cum-Cum and structured bond loans. Despite their legal obligation to act in the public interest, they have allegedly failed to do so in so-called tax trades.
Brorhilker reiterates that institutions with a duty to act in the public interest may not harm public coffers. In light of this, she calls for increased scrutiny of savings banks in Cum-Cum transactions.
The Shredder Law and other tax evasion schemes like Cum-Cum and Cum-Ex continue to be contentious issues. While calls for its abolition or reform persist, there has been no definitive action as of mid-2024. As the fight against financial crimes carries on, Brorhilker remains at the frontlines, pushing for justice and transparency.
- Anne Brorhilker, a former prosecutor and Cum-Ex investigator, urges emphasis on uncovering Cum-Cum cases and securing evidence, noting the urgency due to changes in retention periods for booking vouchers and receipts under bureaucratic reduction.
- Brorhilker, co-leading the Citizens' Movement for Financial Reform, addressed the Club of Hamburg Economic Journalists, addressing the need to reform or abolish the 'Shredder Law,' which she claims hinders investigations into complex financial crimes like Cum-Cum and Cum-Ex.
- In her pursuit of Cum-Cum perpetrators, Brorhilker places particular emphasis on savings banks, which she accuses of participating in Cum-Cum and structured bond loans and failing to act in the public interest, as required by law, in 'tax trades.'
- The Shredder Law mandates the destruction of certain tax-relevant documents after a specific retention period, making it difficult for authorities to prosecute cases like Cum-Cum and Cum-Ex, benefiting those who have acted dishonestly.
- The estimated tax loss for Cum-Ex transactions amounts to around 10 billion euros, while Cum-Cum's estimated loss is close to 30 billion euros, with the recovery rate for Cum-Cum transactions remaining dismal, hovering below 1%.
