Maltese MEP Alfred Sant told the European Parliament that if banks from Cyprus, Greece or Malta had been involved in the Cum Ex scandal the ongoing naming and shaming proceedings would not have been so mild as it was with banks in the larger member states involved in this scandal. 

The Cum Ex scandal revealed that an organised group of bankers had stolen over €55 billion from the public funds of several Member States, notably France and Germany, over the past 15 years through the so-called Cum-Ex deals. It was revealed that bankers, lawyers and other intermediaries were trading shares and receiving tax reimbursements for tax that had never been paid.

The Maltese MEP abstained on the resolution ‘The Cum Ex Scandal: financial crime and the loopholes in the current legal framework’, while fully agreeing with the need to curb all abuse of tax reimbursement schemes.

Sant said problems arise when the foreseen measures to end these practices go beyond their objective and are used as a pretext to introduce tax harmonisation. Enhancing tax transparency and exchange of information in this field must be seen and must be implemented as a proportionate solution in the context to which it applies, as well as in its effects.

Member States must be left with their full tax sovereignty. Indeed, given its potential impact on the integrity of financial markets, the future Directive on Administrative Cooperation in the field of taxation should include transparent exchange of information on tax refunds and dividend arbitrage.

“Such exchange would quite likely show that the larger Member States - there’s no need to mention which  - have turned a blind eye to such abusive tax practices, despite their scale and consistency over the years. It is difficult to believe the contrary. Would the ongoing naming and shaming proceedings have been so mild if banks in Cyprus, Greece or Malta were involved in such a scandal? I don’t think so.”

The resolution was approved with 439 votes in favour, 171 votes against and 26 abstentions.