Scholz denies involvement in 'cum-ex' tax fraud scandal during parliamentary testimony"

(MENAFN) German Chancellor Olaf Scholz vehemently denied any participation in a multibillion-euro tax fraud scandal during his time as mayor of Hamburg, making his third appearance before a parliamentary committee on Friday.

The Social Democrat, who held the position of Hamburg's mayor from 2011 to 2018, faced new inquiries about his supposed connections with banks implicated in the “cum-ex” scandal, considered one of the largest tax frauds in Germany’s history.

“I have always advocated for a fair tax system throughout my political career,” he stated to the investigative committee of the Hamburg parliament, emphasizing that the accusations leveled against him were groundless and lacked any proof. He also reaffirmed his backing for extensive probes into tax evasion schemes.

The “cum-ex” scandal, in which numerous financial entities exploited a loophole in tax regulations, is estimated to have cost the German taxpayer over EUR30 billion (USD31.7 billion). Dozens of banks assisted their clients in deceiving governments to secure refunds for taxes they had not paid.

Scholz's testimony concentrated on his interactions with HSH Nordbank, which is accused of unlawfully claiming tens of millions of euros in tax refunds between 2008 and 2011. Opposition groups alleged that he helped hide HSH Nordbank's role in the scandal while the bank was negotiating a potential sale to US investors.

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