Slow progress in tax claims: Greens criticize Bavaria

Slow progress in tax claims: Greens criticize Bavaria

The discussion about the CUM/CUM-Aktiendals throws shadows on the integrity of the Bavarian financial administration and the handling of tax claims. According to the current report of the Munich Finance Ministry, only 34 million euros of originally susceptible 222 million euros remain as paid or legally not to collect. This questions the efficiency of the government agencies and increases the criticism of the Greens.

The role of the CUM /CUM business in tax law

CUM/CUM businesses that have been prohibited since 2016 enable domestic companies to have capital gains tax back on dividends. Foreign investors, on the other hand, have a much harder time. Through short-term transmissions of shares before dividend stitching days, the banks managed to retain the deductible taxes and to return the shares to the original owners. This practice obviously served only the tax bypass.

Criticism of the slow progress of the reclaims

Tim Pargent, the Greens' financial policy spokesman, is critical of the route that the state government is covering in the return process of these tax money. He criticizes the fact that no central, well-occupied unit for clarifying and returning CUM/CUM funds has been set up in the past eight years. This is in contrast to the CUM/EX transactions, in which a significantly higher reimbursement rate was achieved.

The political implications and the call for change

Pargent suspects that the slow progress is partly due to the gentle treatment of the banks that have benefited from these deals. He sees parallels to an "Amigo culture" that prevails in Bavarian politics. He considers a central special unit with enough staff who actively manage the reclaims.

Conclusion

The discussion about the CUM/CUM business not only illustrates the challenges of the financial administration, but also raises questions about political will formation. The previous progress in the return process of the tax money is inadequate, and there is an acute need for structural changes within the Bavarian financial authorities. It remains to be seen how things will go, but the pressure on the state government is increasing to finally act and to remedy the grievances.

- Nag