Skimming Past Shady Financial Transactions: Ex-Prosecutor Brorhilker Urges Action Against "Dishonest Shredder Law"
Opposing Advocate Brorhilker Urges Halting of 'Paper Destroyer Act' - Halting the "Paper-Shredding Act" – Ex-Prosecutor Brorhilker's Call for Action
Anne Brorhilker, ex-Cologne Chief Prosecutor and renowned Cum-Ex sleuth, has emphasized the need for quick action in pursuing criminal financial cases. She stated at a Club of Hamburg Economic Journalists gathering that the urgency isn't merely due to potential statutes of limitations or shortened retention periods for bookkeeping records, but also due to these changes assisting those who've acted dishonestly.
Brorhilker, who gained public acclaim for her role in cracking Germany's biggest tax heist, initiated over 1,000 investigations as a lead prosecutor. She led raids on banks, offices, and even top politicians, shedding light on the underhanded nature of Cum-Ex transactions.
Cum-Ex transactions involve banks and investors fraudulently exploiting tax refunds they didn't actually pay. Cum-Cum transactions take this a step further, enabling investors to dodge capital gains tax entirely. Perpetrators of these shady dealings often entangle Cum-Cum and Cum-Ex transactions. According to Brorhilker, the estimated losses from Cum-Ex transactions amount to around 10 billion euros, while those from Cum-Cum transactions reach nearly 30 billion euros.
The recovery rate for the state in Cum-Cum transactions is dwindling, currently sitting below one percent. Brorhilker believes it's imperative to exert pressure on and repeal the shortened retention periods to ensure that lawbreakers aren't given an easy pass.
Since honest businesses voluntarily maintain their records longer for potential tax audits, the "dishonest shredder law" only benefits those looking to hide their dirty dealings. As a result, they can no longer be held accountable.
Brorhilker asks for a focus on savings banks in relation to Cum-Cum transactions. She asserts that these institutions have also participated in Cum-Cum transactions and complicated bond loans. Despite being legally responsible for acting in the public interest, they have failed to do so in these damaging "tax trades." It doesn't take a lawyer to see that an institution acting in the public interest shouldn't jeopardize public funds.
- Brorhilker, a former Cologne Chief Prosecutor, has underlined the importance of immediate action in handling criminal financial cases, citing the "dishonest shredder law" as a concern.
- Brorhilker, known for her role in uncovering Germany's largest tax heist, led over 1,000 investigations, unmasking the deceitful nature of Cum-Ex transactions.
- Cum-Cum transactions, an extension of Cum-Ex, allow investors to evade capital gains tax completely, and the losses from these transactions are estimated to be nearly 30 billion euros.
- The recovery rate for the state in Cum-Cum transactions is alarmingly low, currently at less than one percent, making it crucial to repeal the "dishonest shredder law" to ensure accountability.
- Brorhilker suggests focusing on savings banks in relation to Cum-Cum transactions, arguing that these institutions, which are legally obligated to act in the public interest, have joined in these dubious transactions, putting public funds at risk.
