Anne Brorhilker, a former senior prosecutor and noted investigator of tax fraud, has called for the establishment of an independent federal agency in Germany to address the increasing complexities of international tax evasion schemes like Cum-ex and Cum-cum transactions.

Speaking at a gathering of the Hamburg Economic Journalists Club, Brorhilker highlighted the significance of these financial activities, asserting that they represent organized crime directed primarily from financial hubs such as London.

Having served in the Cologne public prosecutor's office from 2002 until 2024, Brorhilker has been instrumental in bringing to light fraudulent operations that exploit tax regulations.

Her work gained substantial attention following critical investigations in 2013 and a global raid in 2014 that sought to expose the mechanics of these schemes.

In her view, a dedicated federal body could enhance the effectiveness of investigations into tax-related offenses by assembling a focused team distinct from existing financial ministry staff.

Brorhilker argued that the staffing required would not incur significantly greater costs than current operations.

Brorhilker's notable past prosecutions include the case against Christian Olearius, a banker from Hamburg involved in Cum-ex dealings.

In 2024, this trial was halted due to Olearius’s poor health, but it highlights the challenges faced in prosecuting financial crimes.

Olearius countered with legal action against Brorhilker himself, which adds complexity to the broader investigation.

Additionally, a long-term inquiry by the Hamburg Parliament failed to establish whether former Mayor Olaf Scholz had provided illicit support to Olearius regarding these financial dealings.

Cum-ex transactions generally involve the circulation of shares to reclaim capital gains taxes which have not been paid.

Cum-cum transactions exploit similar loopholes by allowing foreign investors to temporarily transfer their shareholdings to domestic entities, enabling the latter to reclaim taxes that would eventually return to the original shareholders.

Legal interpretations in Germany have categorized these practices as illegal for several years, according to our findings.

The financial damage to Germany from Cum-ex activities has been estimated at approximately €10 billion, while Cum-cum transactions could account for around €28.5 billion in losses.

Brorhilker noted that certain cooperative banks and savings banks have been implicated in these wrongdoings.

Brorhilker's departure from the prosecution service in April 2024 stemmed from frustrations regarding the lack of rigorous action from financial ministries and tax offices in tackling these frauds.

Following her resignation, she became Co-Managing Director of the civil movement Finanzwende e.V. in Berlin, focusing on financial transparency and accountability.

Reports suggest that around €100 billion in taxes is evaded annually in Germany, a figure that raises questions amidst ongoing public discourse regarding state debts and fiscal policy.

Brorhilker pointed out systemic issues within financial ministries that exacerbate the problem, including high turnover rates of employees, which hinder the development of long-term investigative expertise.

Her advocacy emphasizes the imperative need for structural reform within investigative bodies to advance the effectiveness of revenue protection efforts and related oversight.