Stock Shenanigans and Bank Robberies: Ex-Prosecutor Brorhilker Sounds the Alarm on "Shredder Law"
Stop the 'Shredder law,' urge ex-prosecutor Brorhilker - Oppose the "papers destruction act" - statement by ex-prosecutor Brorhilker
Gear up for a rollercoaster ride as we dive into the shady world of Cum-Cum and Cum-Ex financial schemes, where former Cologne Chief Prosecutor and key Cum-Ex buster, Anne Brorhilker, demands immediate action. "Swift movement is crucial not just due to the ticking statute of limitations clock, but also due to the sneaky shortening of record retention periods under the guise of bureaucratic optimizations," she warned, addressing members of the Club of Hamburg Economic Journalists. This is the year to uncover those sneaky Cum-Cum cases on the down-low and gather evidence.
Brorhilker, now a household name for taking down "the epic tax heist of the century" and spearheading a thousand investigations under her tenure as a prosecutor, has searched the depths of banks, government agencies, and yes—even the offices of top politicians. She didn't shy away from testifying before the Hamburg parliamentary inquiry into the Cum-Ex fiasco.
So, what's all this about Cum-Ex and Cum-Cum? It's like a financial shell game where banks and investors dupe the system and claim tax refunds they haven't actually coughed up. Cum-Cum deals are a whole new level of skulduggery, where they somehow manage to avoid paying capital gains tax entirely. In practice, these delicious-sounding deals are often intertwined, Brorhilker advises. The bigwigs behind these schemes, you see, often use the same ol' oven-fresh stock for Cum-Ex and Cum-Cum deals. The estimate? A whopping 10 billion euros in tax dodged for Cum-Ex and almost 30 billion euros for the cunning Cum-Cum.
Here's where it gets tricky: The state's recoupment rate for Cum-Cum deals-that's the percentage they've managed to wrangle back-is less than one percent, Brorhilker reveals. That's why we need to make a case for nuking these shortened record retention periods. "It's not fair, it's not square; it only benefits dishonest folk who care more about slipping beneath the radar than playing by the rules," she declares.
As things stand, financial authorities and tax custodians have deadlines that are noticeably longer than those of companies. To protect their proverbial assets, trustworthy businesses voluntarily retain their records longer to be ready for potential tax audits. But, Brorhilker warns, the controversial "Shredder Law" is a sneaky double-edged sword that only benefits those with something to hide as they can no longer be pursued.
Brorhilker is especially concerned about savings banks getting in on the Cum-Cum action. "Savings banks, graduated from the same lemonade stand to Fort Knox, have also been part of the Cum-Cum game and bond loan shenanigans," she notes. It's their legal obligation to act in the public interest, yet they've shown a terrible taste for those so-called tax trades. "Even if you're not a lawyer, you can see that," she cautions. "If an institution's duty is to serve the public good, it shouldn't stab the public coffers in the back!"
- Anne Brorhilker, the ex-prosecutor known for her work in the "epic tax heist of the century," has called for immediate action on employment policy within financial agencies, emphasizing the need to preserve records beyond the current shortened retention periods due to the complexity of ongoing investigations into Cum-Cum and Cum-Ex financial schemes.
- Brorhilker, in her address to the Club of Hamburg Economic Journalists, raised concerns that the controversial "Shredder Law" could potentially benefit employment policy practices that aim to conceal wrongdoings, making it harder for investigators to uncover evidence of tax fraud.
- The former Cologne Chief Prosecutor believes that community policy within financial institutions needs to be revised to ensure that savings banks, which are expected to act in the public interest, do not engage in questionable activities such as Cum-Cum and bond loan business shenanigans that lead to tax evasion.
- Brorhilker urged policymakers to reconsider the tax implications of employment policy decisions, suggesting that a revision of record retention periods and the introduction of stricter audits could help prevent the estimated 30 billion euros evaded through Cum-Cum schemes from further draining public resources.
