Organized International Cum-Ex Tax Fraud in Austria - 183 Million Euros Damage

OrganizationsOther ♦ Published: April 9, 2019; 16:46 ♦ (Vindobona)

In connection with dividend stripping, the tax fraud model "Cum-Ex" was created, which deliberately allows the multiple refund of capital gains tax paid only once. According to a report in today's Ö1-Morgenjournal, presumably mainly Arab investors, in cooperation with domestic financial advisors and banks, caused Austrian taxpayers a loss of 183 million euros.

Löger: "This is a fight against organised fraud against the state to protect honest taxpayers and the bona fide economy". / Picture: © BMF - Federal Ministry of Finance - Bundesministerium für Finanzen / Wilke / Flickr Attribution 2.0 Generic (CC BY 2.0)

In a Cum-Ex fraud, two applicants recover the capital gains tax (KESt) from the tax authorities, even though it is only attributable to one applicant.

The trick works as follows.

With a Cum-Ex fraud shares with dividend entitlement (Cum dividend) are sold briefly before the dividend record date, however without dividend entitlement (Ex dividend) after the date of the…