Dividend Deceptions: Delving into the Most Common Dividend-Tax Fraud Schemes

In April 2023, a Dubai court ordered a former hedge fund trader to be extradited to Denmark, where he stands accused of a $1.9 billion dividend-tax fraud. So-called “cum-ex trades,” otherwise known as “dividend stripping,” have reportedly cost Germany and 10 other countries an estimated $57 billion in lost tax income over the past decade or so. Meanwhile, so-called “cum-cum trades” have also proliferated, allowing shareholders to avoid paying a dividend tax when they temporarily transfer their shares to an investor abroad. In March 2023, French prosecutors raided the offices of five large banks on suspicion of involvement in long-running cum-cum schemes. This webinar will unpack both kinds of dividend- tax fraud schemes and provide insights into how financial institutions can protect themselves against them.