Stewart Hey, Hugh Gunson and Rachel Warren write for Solicitors Journal on the cum-ex scandal
In this first instalment of a two part series for Solicitor's Journal, Stewart Hey, Hugh Gunson and Rachel Warren, in our Litigation and Dispute Resolution division, explain the background to the cum-ex scandal and the criminal and civil proceedings being brought in jurisdictions around the world.
The cum-ex scandal has been making headlines for years. As distinct from the parallel cum-cum dividend frauds, the practice involved the trading of shares for the purpose of claiming multiple refunds of the same withholding tax; and the sums involved are huge.
A recent Supreme Court decision held that SKAT’s claims were not inadmissible in the English Courts by virtue of the ‘revenue rule’ (the common law principle that the English courts will not enforce foreign tax laws), and the case is proceeding to a full trial this year.
In the piece, the team outline that:
In addition to potential civil and criminal proceedings, the regulators will be asking questions about professional conduct, and whether policies and procedures were sufficiently robust.
Read the full article in Solicitor's Journal here (subscription required).
