World’s Biggest Banks Helped Clients Steal $63 Billion in Taxes in Europe

World's Biggest Banks Help Clients Steal $63 Billion in Taxes in Europe

Europe’s top banks allegedly helped wealthy clients across the continent steal 55 billion euros ($63 billion) from multiple governments by making tax reclaims to which they were not entitled, an investigation has revealed. The theft centred around a complex scheme of trading stocks that also involved hedge funds and large international commercial law firms.

Also read: $50 Million Bitcoin Mining Farm Opens in Armenia

Undercover Journalists Uncover ‘the Biggest Tax Swindle in the History of Europe.’

The undercover probe by 37 journalists from 12 countries shows that about a dozen European countries are affected by the tax scandal, but Belgium, Denmark and Germany were hardest hit. France, Italy, the Netherlands, Norway, Spain, Sweden and Switzerland have also seen some damage.

World’s Biggest Banks Help Clients Steal $63 Billion in Taxes in Europe

Dubbed the Cumex Files, the investigation reviewed 180,000 secret documents from banks, stock traders and law firms over a period of more than a year. Interviews with anonymous sources and whistleblowers provided extra detail. “They [the secret documents] demonstrated the extent to which banks and investors could reimburse taxes on stock deals that they did not have,” the Files said.

“These windy financial constructs are called cum-cum (cum means ‘dividend’). A domestic bank helps a foreign investor to get a tax refund that they are not entitled to. The profit is shared between the participants.”

A variant of the scheme, called ‘cum-ex’ (without dividend), would see traders refunded twice or, in severe cases, several times, by the state for taxes buyers or sellers of stock would have paid only once. Share ownership is often difficult to point out because of the complex structure of the schemes, which constitute a form of tax evasion or avoidance.

Both cum-cum and cum-ex went on for decades unnoticed due to different regulations within European Union member countries.

World’s Biggest Banks Help Clients Steal $63 Billion in Taxes in Europe

Mixed forms have emerged, the report says, “and new, even more aggressive mutations for which there are no names yet.” The investigative journalists claim that they have uncovered “the biggest tax swindle in the history of Europe.”

“It was a trade that was initially discovered by chance,” a separate video of the Cumex Files detailed. “Yet a group of masterminds turned it into an industrialized cottage industry, from Dubai to London, New York to Dublin taking billions of euros out of the pockets of European tax payers,” it said.

Banks in Up to Their Necks

The investigations revealed how some of the world’s biggest banks have been instrumental in aiding the tax fraud. UBS, BNP Paribas, Barclays, JPMorgan, Meryll Lynch, Banco Santander, Morgan Stanley, Deutsche Bank and Swedish bank SEB have all been implicated.

They allegedly helped tax evaders drill a hole of around $2 billion in Danish state coffers. A tip-off from Danish authorities helped Sweden prevent more than 10 fraud attempts totaling 380 million kroner ($46 million), according to Swedish news agency Di. But that was not before local bank SEB allegedly received 70 million Swedish kroner ($7.8 million) for helping to conceal one billion Swedish kroner ($111 million) from the German treasury.

World’s Biggest Banks Help Clients Steal $63 Billion in Taxes in Europe

In Germany, where authorities halted cum-ex trading in 2012, the potential tax losses from cum-cum deals between 2001 and 2016 is anything upwards of 49.2 billion euros ($56.6 billion), according to a 2017 report.

Perpetrators told the investigating team that “it is legal to be reimbursed for taxes that were never paid.” However, governments “assume a tax abuse of design, if business is purely tax-motivated,” the Cumex Files explained.

“The deals are solely for the purpose of collecting taxpayers’ money. Otherwise, there is no value behind the trade,” said the investigators, adding that the schemes started to pick up around 2007 during the global financial crisis, “a time when the state will save the banks from collapse, again with taxpayers’ money.”

European lawmakers have called for an official investigation into the cases. “Tax theft is a crime against society. Europe cannot and must not tolerate this!” MPs in the European parliament said in an online statement.

What do you think about the Cumex Files findings? Let us know in the comments section below.


Images courtesy of Shutterstock.


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Northern Bitcoin Ag Lists on Munich Stock Exchange Mid-Tier Market

Northern Bitcoin Ag Lists on Munich Stock Exchange Mid-Tier Market

German bitcoin mining company, Northern Bitcoin AG, has migrated to a section of the Munich Stock Exchange that caters for medium-sized enterprises. The M:Access is regarded as a key market for companies seeking to improve transparency, accountability and to gain wider access to new money. Since April 2015, the company has been listed on the over-the-counter market of the Munich exchange, which is a rung below its current listing.

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Northern Bitcoin Ag New Listing Opens Access to Capital Markets

German bitcoin miner, Northern Bitcoin AG (MUN:NB2), has listed its shares on M:Access, a junior market on the Munich Stock Exchange (MSE). The Frankfurt-based company first went public in April 2015, joining the least of the MSE three-tier system – over-the-counter market. The main platform is the ‘regulated market.’

Northern Bitcoin Ag Lists on Munich Stock Exchange Mid-Tier Market
Former building of the Munich Stock Exchange

Mathis Schultz, chief executive officer of Northern Bitcoin AG, said listing on Munich’s mid-tier market would give the company, a cryptocurrency software and hardware developer, wider access to capital markets.

“Our business is very dynamic. We are developing synchronously with the globally strongly growing Bitcoin blockchain and its first and largest application, the bitcoin,” he said, in a statement.

“As Northern Bitcoin AG develops its business very fast, it simultaneously has to serve the growing needs of the investors. Northern Bitcoin fulfills the higher obligations arising from admission to the M:Access segment of the Munich Stock Exchange and thus our results and perspectives become more transparent to investors. So, M:Access increases the visibility of our company in the capital market,” Mathis Schultz explained.

M:Access is a segment of the MSE open market that ensures a degree of transparency through special admission and follow-up obligations, which are closely aligned with the main regulated market.

‘Mining Powered by Renewable Energy’

Munich Stock Exchange managing director Marc Feiler said listing of the $157.76 million valued Northern Bitcoin AG was testament to the growing cryptocurrency industry.

“With Northern Bitcoin, we have gained an innovative, young company in a very interesting and highly regarded market for M:Access. This shows us that we offer an unbureaucratic and flexible stock exchange in Munich that attracts companies across all industries,” Dr  Feiler said.

Northern Bitcoin Ag Lists on Munich Stock Exchange Mid-Tier Market

Northern Bitcoin AG, formerly Biosilu Healthcare AG, runs its mining rig from Norway, which the company claims is 100% powered by renewable energy from hydro and wind. The network is designed to allow its users to contribute to the mining of bitcoin, with the rewards split among the contributors.

The miner reported $1.72 million net loss for the half year to June 2018. Over the past 52 weeks, shares of Northern Bitcoin AG have reached a high of $58 and a low of $1. At press time, the stock was up 5.1% at $21.34.

What do you think about Northern Bitcoin’s business model, which aims to run bitcoin mining completely on renewable energy? Let us know in the comments section below.


Images courtesy of Shutterstock


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PR: EasyVisual Blasts Advertising Market with New Channel for Brand Promotion

EasyVisual Blasts Advertising Market with New Channel for Brand Promotion

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Imagine a perfect world where the advertisement of your brand is shown only to target audience any time they use their phones. The targeting is based on location, gender, education and other characteristics which gives advertisers and brands only real views for real possible clients. The advertising market launches more and more more application that are developed in accordance with brands’ requirements and provide a possibility to set detailed configurations and make promotion process simpler. One of the companies has recently launched a mobile application which is claimed to become the next revolution in the advertising market and we are about to tell you why it worths your attention.

According to Statista, there will be 2,5 billion people using smartphones by 2019. Mobile users unlock their phones from 80 to 110 times per day. At the same time, 69% of consumers from 18 to 39 years old use mobile phones for a research of products before purchasing them. Mobile devices automatically become a new channel for brands promotion as people simply cannot imagine their lives without their phones. Applications for smartphones will definitely change the advertising market.

What is the new technology?

Emarketer research states that $101 billion was spent on mobile ads globally last year which is 5 times more than in 2012. Spendings in this sector will only increase.
EasyVisual is an advertising network that before the launch of the app has already had a 3,5 million audience in 190 countries including South Korea, China, Vietnam, Poland, Slovakia, Germany, Ukraine, Turkey, Czech Republic, Israel. The company has made a right choice and decided to use as much potential of smartphones as possible in order to make brands promotion successful and cost-effective.

Banners App and its benefits

Advertising of cryptocurrencies hasn’t become simpler with the development of the blockchain technology and its fast increasing popularity. Facebook was the first social network to forbid crypto ads. Web giants like Google, Bing, and Twitter have followed by as well. It’s getting more complicated to promote crypto projects and coins, so the advertising market comes up with new ideas and approaches in order to give cryptocurrencies a chance to get audience awareness on the same level as other products and services.

One of the ways to solve the existing problem for crypto advertisement is to launch a mobile application. For example, Banners App is based on Android operating system and doesn’t have any ad restrictions for crypto. The app can be downloaded from Google Play and is activated any time a user unlocks a phone. Users indicated their personal information in the app: location, gender, marital status, education, languages, interests, professional achievements, and wellness. The targeting is based on the following characteristics. Besides, users can set the number of times they want to see the ad.

By using Banners App brands and advertisers get:
• A mobile application based on the leading and more profitable operating system in the market;
• Statistical data on advertising campaign: number of real views and a conversion rate of the advertisement;
• Payment for real views of the ad that is shown only to the target audience.

Thanks to EasyVisual there will be no more useless advertisement and money spent on the promotion will prove its worth.

Contact Email Address
pr@bdcenter.digital

Supporting Link
https://easyvisual.com/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Tom Lee: Bitcoin to Hit $20k in 2018 Despite Struggle of Emerging Markets

Fundstrat’s Tom Lee, a Bitcoin permabull known for his optimistic price targets for the dominant cryptocurrency, has said that Bitcoin will likely end the year explosively higher possibly at $20,000. In an interview with CNBC, Lee stated that over the past year, Bitcoin, which has failed to show a correlation with the broader financial market … Continued

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