BaFin Quantifies Burden from Cum/Cum and Cum/Ex at 7.01 Billion Euros

The survey was directed by BaFin at 267 German credit institutions, 542 insurance companies and pension funds, as well as at 58 selected securities institutions, financial market infrastructure companies, and external capital management companies authorized to manage open-ended securities funds. In total, 73 credit institutions, 21 insurers, and twelve companies from the securities sector indicated that they were affected by at least one of these sets of questions.

With regard to the Cum/Cum arrangements, 54 credit institutions, 18 insurers, and three companies from the securities sector declared that they had potentially been involved in such structures. The resulting financial burdens on the companies amounted, according to the current evaluation, to a total of 4.82 billion euros. Broken down, 4.08 billion euros are attributable to credit institutions, 0.74 billion to insurance companies and pension funds, and 0.01 billion euros to the securities sector.

How Cum/Cum and Cum/Ex Work

In the case of Cum/Cum, foreign equity investors avoided paying German dividend taxes by lending or selling their shares to German banks shortly before the dividend record date. Due to delays in the banks' booking systems, it appeared to the tax authorities on the record date as if there were two legitimate owners of the same shares. The capital gains tax on these shares was paid to the state only once; however, due to the confusion, the tax office issued two certificates for tax refunds, so that the state repaid taxes it had never collected.

In the case of Cum/Ex, the trick consisted of rapidly trading a package of shares in a circle between three parties immediately before the dividend record date – often involving so-called short sales. The BaFin also asked the affected companies about burdens from these structures and about criminal tax investigations against senior personnel.

Breakdown of the Burden

The supervisor emphasized that 41 percent of the overall burden represents potential future burdens, and 59 percent payments already made. In total, provisions amounting to 638 million euros have been set aside for potential future financial burdens from Cum/Cum arrangements. The figures do not relate solely to realized burdens, but also to potential future burdens; moreover, they do not only concern tax claims, but also other burdens such as civil law claims.

„Bestandsgefährdet ist nach derzeitigem Stand keines der befragten Unternehmen“, the BaFin stated. Nevertheless, it will examine the results for the individual companies in greater depth – where necessary also with regard to governance, tax risk management, and the role of individual persons. The authority can take supervisory measures if it has doubts about the reliability of management boards, supervisory or administrative boards, or other holders of key functions.

Further Examinations and Areas of Responsibility

At the same time, the BaFin pointed to limits on its jurisdiction: „Die Entscheidung, ob Steuergestaltungen strafbar sind, trifft nicht die Bafin. Sie obliegt der Rechtsprechung. Das Gleiche gilt für die Frage, ob solche Gestaltungen steuerrechtlich zulässig sind oder nicht.“ The supervisor announced that it would in future also look at criminal tax investigations against senior personnel of the affected institutions.

The figures cited are aggregations of the companies' disclosures from the Banking Supervision, Insurance Supervision, and Securities Supervision divisions. These figures therefore potentially contain, among other things, double counts, for example when the same tax matter is taken into account at different companies. The publication was made on July 13, 2026 via Dow Jones Newswires.

The BaFin survey is part of a broader review of so-called Cum/Cum and Cum/Ex transactions, through which amounts sometimes in the double-digit billions are said to have flowed back from the German treasury over the years. The supervisor indicated that it would push ahead swiftly with the individual examinations and subsequently provide information about any measures.