The money was provided by the two main shareholders of the Warburg group. With payments totaling € 155 million, “the taxes set by the tax office for the years 2007-2011 as a result of the so-called transactions with Warburg Bank shares were paid in full,” the bank emphasized. The tax collection ordered by the Bonn Regional Court in March 2020 is now complete.
The bank wants to continue to take action against tax assessments
The Hamburg private bank stated that it had now paid the full amount of the tax itself, “although third parties started and processed the business and made large profits, while the Warburg Group never intended to benefit unduly from tax credits.” Thus, the Bank still does not share the authorities’ tax assessment, according to which it is to be entitled primarily and exclusively to entire tax claims – and continues to take legal action against tax assessments. “Claims for damages have now been filed against the initiators, liquidators and traders,” the bank said.
Cum-Ex: Profit with capital gains tax refund
Various banks, investors and tax law experts have been involved in controversial cum-ex tax transactions for years. These transactions led to billions in damage to the state treasury. For cum-ex trades, stock traders were confused with tax authorities with shares with (“cum”) and without (“ex”) dividend claims. Investors have paid capital gains tax on one of the share dividends several times with the help of banks. To this end, these shares were moved back and forth between several participants around the dividend date. The tax authorities then reimbursed capital gains taxes which had not been paid.
Parliamentary Committee of Inquiry into Citizenship
The cum-ex scandal and the tax treatment of Warburg Bank are also occupied by the parliamentary committee of inquiry on Hamburg citizenship. The committee was set up in November to clarify the possible influence of leading SPD politicians in tax proceedings in favor of Hamburg’s private bank. In the background are talks between then-mayor and current federal finance minister Olaf Scholz (SPD) in 2016 and 2017 with Warburg co-owner Christian Olearius, who was under investigation on suspicion of serious tax evasion in connection with cum-ex transactions. . Hamburg later authorized the statute of limitations for any additional tax claims of 47 million euros, and another 43 million euros were claimed only after the intervention of the Federal Ministry of Finance.
Scholz and his successor as mayor Peter Tschentscher (SPD), who was a financial senator at the time, denied the allegations. The committee, which has so far dealt only with procedural and personnel issues, is expected to meet at its third meeting in March after examining the documents requested by the Senate.