Two British brokers in their 40s from the City of London financial district are facing charges in a lawsuit called cum-ex that affects a large portion of the world's largest banks. The trial has attracted tremendous attention far beyond Germany. The banks that have been involved in the tax filing have sent a total of 60 lawyers to the Bonn court. About the same number of journalists are in place to monitor the trial.

Prosecutors and police have for several years investigated the suspected tax crime in, among others, Germany, Denmark, Belgium and the United Kingdom. The prosecution in Bonn concerns a suspected tax fraud of approximately SEK 4 billion. But overall, the tax havens are estimated to have cost Europe's taxpayers up to SEK 500 billion.

penalty Discount

The two defendants belong to the Crown witnesses who told the prosecutors about the suspected tax crime and who are expected to receive a penalty discount when convicted. If the court goes on the prosecutor's line, it could be the start of a long series of lawsuits against the lawyers, tax lawyers, bank executives and brokers who participated in the tax fraud.

In October 2018, SVT and the news agency TT together with a number of news editions throughout Europe, with the help of the German research editor Correctiv, were able to reveal the extent of this called cum-ex and which also affected Sweden. According to German prosecutors and several documents in the database to which SVT had access, the Swedish bank SEB has, among other things, participated in an advanced stock transaction which, according to the prosecutors, cost German taxpayers a billion SEK. Representatives of SEB have denied such funding.

Troll away treasure

In simplified form, Cum-Ex is about doing a number of complicated stock transactions across national borders to eliminate the tax on dividends or to get back a tax you never paid.